Financial Crime World

Croatia Adopts New AML Guidelines for Financial Institutions

Harmonizing Legislation with International Standards

Zagreb, Croatia - The Republic of Croatia has implemented new guidelines for anti-money laundering (AML) and combating the financing of terrorism (CFT) for financial institutions in the country. These regulations aim to harmonize Croatian legislation with international standards, specifically the EU’s 4th AML Directive and the Financial Action Task Force (FATF) recommendations.

The AML/CFT System in Croatia

The AML/CFT system in Croatia is a complex network of entities working together to prevent the misuse of the financial system for money laundering and terrorist financing. At the heart of this system is the Agency for Prevention of Money Laundering and Terrorist Financing (AMLO), which plays a central role in collecting, analyzing, and disseminating information on suspicious transactions to competent authorities.

Responsibilities of the AMLO

The AMLO’s responsibilities include:

  • Conducting analytical intelligence analysis on suspicious transactions
  • Inter-institutional cooperation with other authorities
  • Exchanging data with foreign FIUs (Financial Intelligence Units)
  • Publishing statistical data on money laundering and terrorist financing

Reporting Suspicious Transactions

Financial institutions in Croatia are required to report suspicious transactions to the AMLO, regardless of the transaction amount. The reporting entities must notify the AMLO before executing a suspicious transaction and provide reasons for suspicion of money laundering or terrorist financing.

Supervision over Financial Institutions

Supervisory bodies, such as:

  • Croatian National Bank
  • Croatian Financial Services Supervisory Agency
  • Financial Inspectorate
  • Tax Administration

are responsible for conducting supervision over financial institutions to ensure compliance with AML/CFT regulations.

Independence and Accountability

The AMLO is an independent unit within the Ministry of Finance and is established according to the AML/CFT Law. The agency submits an annual report on its work to the Government of the Republic of Croatia.

Strengthening the AML/CFT Framework

The new guidelines aim to strengthen Croatia’s AML/CFT framework, which will help prevent the use of the financial system for money laundering and terrorist financing purposes.