Croatia Faces Partial Compliance in Anti-Money Laundering and Combating Financing of Terrorism
Croatian Government Found Partially Compliant with International Standards
Zagreb, Croatia - The Croatian government has been found to be partially compliant with international standards for anti-money laundering (AML) and combating the financing of terrorism (CFT).
According to a recent report by [name of agency], Croatia’s reporting entity (RE) is required to implement measures to prevent money laundering and terrorist financing. However, the country has failed to demonstrate sufficient support at the policy-making level for an effective fight against ML and TF.
Areas for Improvement
The report highlighted several areas where Croatia needs improvement:
- The RE must ensure that its policies and procedures are consistent with international standards and guidelines.
- The country must improve its capacity to trace and confiscate proceeds of crime, as well as its ability to prevent misuse of legal persons for ML and TF.
Expert Working Group Established
Moreover, the IIWG platform - an expert working group - has been established to facilitate cooperation and coordination on AML/CFT matters. However, the report noted that the group’s membership should be expanded to include all authorities responsible for preventing and detecting ML/TF, as mandated by the AMLTFL (Art.120).
Government Action Plan
The Croatian government has taken steps to address these concerns, including the adoption of an Action Plan for Strengthening the Effectiveness of the Croatian System for Preventing Money Laundering and Terrorist Financing in May 2022. The plan outlines specific actions to improve ML and TF investigations and prosecutions, as well as tracing and confiscation of proceeds of crime.
Partial Compliance Remains
Despite these efforts, the report concluded that Croatia’s AML/CFT regime remains partially compliant with international standards. To achieve full compliance, the country must:
- Demonstrate sufficient support at the policy-making level for an effective fight against ML and TF.
- Improve its capacity to trace and confiscate proceeds of crime.
- Expand the membership of the IIWG.
Future Monitoring
The [name of agency] will continue to monitor Croatia’s progress in implementing these measures and provide technical assistance where necessary.