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Croatia Tightens Bolts Against Money Laundering: What Businesses Need to Know

As Croatia continues its growth as a member of the European Union, the country’s financial sector is becoming increasingly attractive to businesses and investors. However, this also brings with it new challenges in the fight against money laundering. In response, the Croatian government has strengthened its Anti-Money Laundering (AML) framework to ensure that the country remains compliant with international standards.

AT A GLANCE: Croatia’s AML Legislation

The primary law governing AML in Croatia is the Anti-Money Laundering and Terrorist Financing Prevention Act. This act aligns with European Union directives and international standards, providing a comprehensive framework for combating money laundering and terrorist financing. Key provisions of the act include:

  • Customer Due Diligence (CDD): Financial institutions and designated non-financial businesses must identify and verify the identity of their customers.
  • Suspicious Transaction Reporting: Reporting entities must report any suspicious transactions to the Financial Intelligence Unit (FIU) in Croatia.
  • Record Keeping: Reporting entities are required to maintain records of transactions, customer identification, and CDD measures for a specified period.
  • Training and Awareness: Businesses must provide AML training to their employees and establish internal procedures and controls to detect and prevent money laundering.

Key Institutions Playing a Role in Croatia’s AML Framework

Several institutions are crucial in Croatia’s fight against money laundering:

  • Financial Intelligence Unit (FIU): The FIU receives and analyzes suspicious transaction reports, providing financial intelligence to law enforcement agencies and other relevant authorities.
  • Croatian National Bank: As the country’s central bank, the CNB supervises banks and financial institutions for AML compliance.
  • Ministry of Finance: The Ministry of Finance oversees AML policies and regulations at the national level and cooperates with international organizations on AML matters.

Tougher Penalties for Non-Compliance

The AML/TF Act outlines severe penalties for non-compliance, including fines and imprisonment for individuals and entities. Businesses must take AML compliance seriously to avoid these consequences.

AML Solutions for Croatian Businesses

Sanction Scanner offers a software solution that specializes in AML and CTF compliance. With real-time screening against global sanction lists, PEP databases, and adverse media sources, businesses can automate AML checks and customize screening criteria. This comprehensive tool enables international organizations to mitigate financial risks.

Contact Us

To learn more about our AML Solutions and how they can help your business stay compliant with Croatian regulations, please contact us.