CROATIA TIGHTENS NET ON FINANCIAL CRIME AS MONEYVAL GIVES GREEN LIGHT TO ANTI-MONEY LAUNDERING REFORMS
Zagreb, May 2: Croatia’s efforts to strengthen its anti-money laundering and terrorist financing framework have paid off, with the Council of Europe’s MONEYVAL committee giving a positive assessment in a follow-up report released on Tuesday.
Progress in Implementing Anti-Money Laundering Measures
The report evaluates Croatia’s progress in implementing measures to combat financial crime, particularly in relation to:
- Customer due diligence
- Third-party reliance
- Correspondent banking
- Transparency
While some shortfalls remain, the country has made significant strides in addressing technical shortcomings identified in its 2021 Mutual Evaluation Report.
Recent Improvements
Since December 2021, Croatia has taken numerous steps to bolster its anti-money laundering and terrorist financing systems, including:
- Amending AML/CFT legislation to address gaps in customer due diligence measures, third-party reliance, and correspondent banking
- Bringing external accountants under the scope of AML/CFT obligations
- Introducing a disclosure system for cash couriers
Other improvements include the adoption of a national action plan, registration regime, and fit-and-proper requirements for virtual asset service providers (VASPs), as well as enhancements to beneficial ownership registers and streamlined access to information on legal persons.
Positive Assessment from MONEYVAL
As a result of these efforts, Croatia has seen improvements in its ratings across several recommendations, including those related to customer due diligence, third-party reliance, and correspondent banking. While some areas remain Partly Compliant, the country has achieved Largely Compliant or Compliant status on several key recommendations.
MONEYVAL’s assessment is a welcome endorsement of Croatia’s commitment to strengthening its anti-money laundering and terrorist financing framework. The report notes that the country remains under MONEYVAL’s enhanced follow-up procedure, with a further review scheduled for December 2024.
Importance of Continued Progress
Croatia’s progress in this area is crucial not only for its own financial stability but also for its reputation as a secure destination for foreign investment and trade. By continuing to strengthen its anti-money laundering and terrorist financing systems, Croatia can reinforce its position as a reliable partner in the international community.