Croatia Takes Measures to Prevent Money Laundering and Terrorist Financing

The Croatian government has taken steps to prevent money laundering and terrorist financing by preparing appropriate regulations for individual sectors and activities.

National Risk Assessment

The Office of Financial Supervision is required to make the results of the national Money Laundering and Terrorist Financing Risk Assessment available to all reporting entities and competent state authorities without delay. This assessment will identify the risks associated with money laundering and terrorist financing, and help shape the country’s anti-money laundering (AML) and counter-terrorism financing (CFT) policies.

• The Office will also consider supranational risk assessments and recommendations from the European Commission when implementing the national risk assessment.
• If Croatia decides not to apply any of these recommendations, it must inform the European Commission in writing and provide an explanation for its decision.
• Additionally, the Office will report on the results of the national risk assessment to the European Commission, European Supervisory Authorities, and other member states.

Reporting Entities Required to Take Action

A range of reporting entities, including:

• Credit institutions
• Credit unions
• Insurance companies
• Investment funds management companies
• Others

are required to carry out measures to detect and prevent money laundering and terrorist financing. These measures must be taken before and during each transaction, as well as when entering into legal arrangements or disposing of property.

• These reporting entities will be responsible for identifying and mitigating the risks associated with money laundering and terrorist financing.
• They must report any suspicious transactions to the Office of Financial Supervision.

Industry Experts Welcome Measures

Experts in the financial industry have welcomed the government’s efforts to strengthen AML/CFT measures in Croatia.

• “These regulations are a significant step forward in preventing money laundering and terrorist financing in Croatia,” said Dragan Vlahovic, CEO of the Croatian Bank Association.
• “We support any measures that help maintain the integrity of our financial system.”

Conclusion

Croatia’s efforts to prevent money laundering and terrorist financing are a significant step forward in maintaining financial stability and integrity. By implementing these regulations, the government is demonstrating its commitment to international standards and best practices in AML/CFT.

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