Croatia’s Commitment to Beneficial Ownership Transparency Falls Short, Experts Say

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Croatia has committed to implementing beneficial ownership transparency reforms as part of its efforts to combat money laundering and terrorist financing. However, a closer look at the country’s progress reveals significant shortcomings.

The Current State of Affairs

According to data from the Open Ownership map, Croatia launched its Register of Real Owners in 2020. However, the register does not provide structured data publicly available or publish information in the Beneficial Ownership Data Standard (BODS). Moreover, the register is not accessible via an application programming interface (API), making it difficult for researchers and journalists to access and analyze the data.

A History of Commitments

Croatia’s commitment to beneficial ownership transparency was first made in 2018, when the country became obligated as a European Union member state to create a central, public register of beneficial ownership under the EU’s fifth Anti-Money Laundering Directive. However, following a judgement by the Court of Justice of the European Union in November 2022, member states are no longer required to provide public access to the registers.

Recent Reaffirmation

At the 2023 Summit for Democracy, Croatia reaffirmed its commitment to effective implementation of beneficial ownership transparency measures and the maintenance of a beneficial ownership registry or an alternative mechanism. However, critics argue that the country’s current register falls short of international standards for transparency and accessibility.

Experts’ Concerns

Experts warn that the lack of transparency in beneficial ownership registration can facilitate illicit financial flows and undermine trust in the financial system. As Croatia continues to work towards implementing its commitments, it is crucial that the government prioritizes making the data publicly available and accessible to all stakeholders.

• The lack of structured data publicly available hinders research and analysis.
• The inability to access the register via API makes it difficult for researchers and journalists to extract valuable insights.
• Critics argue that Croatia’s current register falls short of international standards for transparency and accessibility.
• The government must prioritize making the data publicly available and accessible to all stakeholders.