Title: Croatia Tightens AML Regulations: VASP Registry Mandatory for Virtual Asset Service Providers
Introduction
The regulatory landscape for Virtual Asset Service Providers (VASPs) in Croatia is undergoing significant changes, with new regulations aimed at aligning local laws with Anti-Money Laundering (AML) compliance obligations. Two key acts have recently been enacted, setting the stage for these transformations.
New AML Act Amendments
The amended Croatian Anti-Money Laundering Act (AML Act) [(1)] becomes effective on January 1, 2023. This legislation introduces new regulations for companies and businesses offering services related to virtual assets. These entities must now register with the Croatian Financial Services Supervisory Agency (Hanfa)’s VASP registry to legally operate in Croatia.
VASP Registry and Regulation
An additional regulation, the Regulation on the Manner of Keeping the Register of Virtual Asset Service Providers and the Assessment of the Good Reputation of Individuals in Virtual Asset Service Providers [(2)] entered into force on July 6, 2023. This regulation outlines the procedures for managing the VASP registry and assessing the “good reputation” of individuals associated with VASPs. Registration in this public, electronic registry is mandatory for all VASPs operating in Croatia.
Requirements for VASPs
Under the amended AML Act and new regulations, companies and individuals offering virtual asset services in Croatia must comply with several stipulations:
- Registration with Hanfa’s VASP registry
- Representatives’ good reputation and clean criminal record
VASP Representatives
VASPs must prove that their authorized representatives meet the following criteria before registration or whenever representation changes:
- No ongoing criminal proceedings
- No convictions under AML Act or related criminal offenses from other member states or third countries
- Compliance with AML Act provisions
- No association with money launderers or terrorists
Deadlines and Consequences
All VASPs were required to apply for entry into the registry by September 4, 2023. Failure to comply with these new regulations can result in being classified as an unauthorized service provider, leading to potential misdemeanor charges and associated monetary fines.
Future Regulations
As Croatian legislation continues to adapt to the evolving virtual asset market and growing public interest, it is likely that further regulations will be implemented.
For more information on the latest AML regulations and their implications for VASPs, please contact Antea Muschet or Miroljub Macešic at Macešic & Partners +385 51 215 010 or by email: [Antea Muschet](mailto:[email protected]) and [Miroljub Macešic](mailto:[email protected]). Their website can be accessed at www.macesic.hr.
[1] The Croatian Act on the Prevention of Money Laundering and Funding of Terrorism (Uredba o sprečavanju pranjenja novca i obezbeđivanju financiranja terorizma), Official Gazette No. 108/2017, 39/2019, 151/2022. [2] The Regulation on the Manner of Keeping the Register of Virtual Asset Service Providers and the Assessment of the Good Reputation of Individuals in Virtual Asset Service Providers, Official Gazette No. 69/2023.