Croatia Joins EU’s “Grey List” of Money Laundering Countries: FATF Announces Increased Monitoring
The Financial Action Task Force (FATF), an international organization dedicated to combating financial crime, has announced that European Union (EU) member state Croatia will now be under “increased monitoring” for deficiencies in its anti-money laundering and counter-terrorism financing measures.
Croatia Becomes the Sole EU Country on FATF’s Grey List
The FATF’s latest development makes Croatia the sole EU country on the grey list, joining other countries such as the United Arab Emirates, Panama, and Mali.
The FATF’s grey list is a list of jurisdictions that have strategic deficiencies in their anti-money laundering and counter-terrorist financing (AML/CFT) measures and have failed to demonstrate sufficient progress in addressing these deficiencies.
Agreed Action Plan to Address Shortcomings
At a press conference following the FATF’s regular plenary meeting in Paris, the organization’s chairman, T. Raja Kumar, stated that Croatia had agreed to implement an action plan to address these shortcomings swiftly.
According to the FATF’s statement on their website, Croatia is required to take immediate action in the following areas:
- Risk assessment for legal entities: Enhance the risk assessment process for legal entities.
- Real estate transactions involving cash: Implement measures to prevent real estate transactions involving cash from being used for money laundering.
FATF Suspends Russia’s Membership and Adds Cameroon and Vietnam to Grey List
The FATF’s suspension of Russia’s membership in February for similar reasons and the subsequent addition of Croatia, Cameroon, and Vietnam to the grey list were the main points of discussion at the June meeting.
The FATF reiterated its call for all jurisdictions to remain vigilant against efforts to circumvent measures taken against the Russian Federation.
Jurisdictions on the Grey List
No current member of the grey list was removed following the June meeting. The FATF is a global intergovernmental organization tasked with establishing international standards and ensuring adherence to these norms in the fight against financial crime.
Current Members of the FATF Grey List
- Croatia
- United Arab Emirates
- Panama
- Mali
- Cameroon
- Vietnam
Previously Removed Members
- Bangladesh (October 2021)
- Ethiopia (February 2022)
- Pakistan (March 2022)
- Saudi Arabia (November 2022)
For more information, please visit the FATF website.