Financial Crime World

Croatia Takes Major Step Towards Beneficial Ownership Transparency with New E-Service

Introduction

In a move aimed at increasing transparency in Croatia’s financial sector, the country has launched a new e-service enabling authorized individuals to enter data into the Beneficial Ownership Register. This electronic database contains information on natural persons who hold significant influence over legal entities established within the Republic of Croatia.

Obligation to Enter Data

According to the Act on the Prevention of Money Laundering and Terrorist Financing, certain types of companies, associations, foundations, institutions, trusts, and trust-equivalent entities are obligated to enter data on their beneficial owners into the register within 30 days of establishment. The list of obligated entities includes:

  • Companies
  • Branches of foreign companies
  • Associations
  • Foundations
  • Institutions
  • Trusts
  • Trust-equivalent entities under foreign law

New E-Service

The new e-service allows authorized persons to easily enter their data into the registry, providing a secure and efficient way for legal entities to fulfill their obligations. This e-service provides:

  • A convenient platform for authorized individuals to enter data into the register
  • Secure access to the registry
  • Efficient processing of data entries

Public Access to Information

The public now has free access to information on natural persons acting as beneficial owners of specific legal entities that are obligated to enter their data into the register. Using the Croatian Personal ID Number (OIB) or the name of the legal entity, individuals can search the registry and obtain publicly available information on beneficial owners, including:

  • Full name
  • Country of residence
  • Month and year of birth
  • Citizenship
  • Nature and scope of beneficial ownership

Benefits of Increased Transparency

The launch of this new e-service is a significant step towards increasing transparency in Croatia’s financial sector, allowing for better monitoring and prevention of money laundering and terrorist financing. The public can now access information on who ultimately owns and controls companies operating in the country, providing:

  • Increased accountability
  • Trust in the system
  • Better monitoring and prevention of financial crimes