Croatia Takes Steps to Combat Money Laundering and Terrorist Financing
The Croatian government has taken significant steps to combat money laundering and terrorist financing by implementing new regulations aimed at preventing these illicit activities.
National Risk Assessment
According to Article 7 of the law, when conducting a national risk assessment, authorities will take into account supranational risk assessments and recommendations from the European Commission. This ensures that Croatia is aligned with international best practices in combating money laundering and terrorist financing.
Reporting Entities
In addition, the Office responsible for combating money laundering and terrorist financing will report on its findings to the European Commission, European Supervisory Authorities, and other member states, as outlined in Article 8 of the law.
To prevent money laundering and terrorist financing, reporting entities such as credit institutions, credit unions, and insurance companies are required to implement measures and procedures to detect and prevent these activities. This includes:
- Carrying out checks before and during transactions
- Carrying out checks upon entering into legal arrangements aimed at obtaining or using property
Reporting Entities Required to Implement Measures
A total of 17 entities are required to implement measures to detect and prevent money laundering and terrorist financing under Article 9 of the law. These include:
- Credit institutions
- Credit unions
- Croatian Bank for Reconstruction and Development
- HP - Croatian Post (postal money orders)
- Institutions for payment operations
- Investment funds management companies
- Pension companies
- Insurance companies
- Companies authorized to provide investment services
- Legal and natural persons acting as insurance agents
- Factoring companies
- Leasing companies
- Institutions for the issuance of electronic money
- Authorized exchange offices
- Organizers of games of chance (lottery, casino, betting, etc.)
- Legal and natural persons performing business in relation to activities listed above
These entities are required to implement measures to detect and prevent money laundering and terrorist financing before and during transactions, as well as upon entering into legal arrangements aimed at obtaining or using property.
Purpose of the Regulations
The new regulations aim to ensure that Croatia is in compliance with international standards and best practices in combating money laundering and terrorist financing. By implementing these measures, the country aims to protect its financial system and prevent the use of its financial institutions for illicit activities.