Financial Crime World

Croatia Boosts Anti-Money Laundering Efforts, MONEYVAL Report Says

Croatia has made significant strides in strengthening its preventive framework to combat money laundering and terrorist financing, according to a recent report by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL).

Improvements in Compliance with FATF Recommendations

The report highlights Croatia’s efforts to address technical compliance shortcomings identified in its 2021 Mutual Evaluation Report. Since December 2021, the country has taken numerous steps to enhance its anti-money laundering and terrorist financing (AML/CFT) systems.

  • Amendments to AML/CFT legislation to address significant shortcomings
    • Improved customer due diligence measures
    • Enhanced third-party reliance and correspondent banking requirements
  • Adoption of a national action plan
  • Introduction of a registration regime for virtual asset service providers (VASPs)
  • Improvements to beneficial ownership registers
  • Streamlined access to information on legal persons
  • Changes to sanctions for non-compliance with transparency requirements

Progress in Recommendations

While some recommendations remain rated Partly Compliant, Croatia has made significant progress in addressing technical compliance shortcomings. The country has been re-rated on recommendations 10, 17, 22, 23, 32, and 40 from Partially Compliant to Largely Compliant or Compliant.

Overall Progress

Overall, Croatia has made notable progress in addressing technical compliance shortcomings, with:

  • 5 out of 40 Recommendations rated Compliant
  • 23 rated Largely Compliant
  • 12 rated Partially Compliant

The country remains under MONEYVAL’s enhanced follow-up procedure and is expected to report back on further progress made towards strengthening its AML/CFT system in December 2024.

About MONEYVAL

MONEYVAL is a monitoring body of the Council of Europe entrusted with assessing compliance with international standards to counter money laundering, terrorist financing, and the financing of proliferation of weapons of mass destruction. The committee evaluates 33 states and territories and makes recommendations to national authorities for necessary improvements to their AML/CFT systems.