Financial Crime World

Croatia Makes Significant Changes to Banking Regulations

In an effort to strengthen its financial sector, Croatia has introduced several amendments to its banking regulations. These changes aim to enhance the stability and efficiency of the country’s payment systems, as well as improve the supervision and regulation of credit institutions.

Amendments to Existing Laws

The amendments were published in the Official Gazette (OG) on various dates between 2003 and 2022, with many taking effect immediately. Some notable changes include updates to:

  • Credit Institutions Act: Improved regulations for credit institutions to ensure stability and efficiency.
  • Foreign Exchange Act: Enhanced guidelines for foreign exchange operations to promote transparency and fairness.
  • Payment System Act: Updated rules governing payment accounts, account switching, and access to basic accounts.

Key Changes

One key amendment is the introduction of new rules governing:

  • Payment Accounts: Increased transparency and fairness for consumers when opening and managing bank accounts.
  • Settlement Finality in Payment and Financial Instruments Settlement Systems: Improved stability and reliability of Croatia’s financial infrastructure by providing clearer guidelines for settlement finality.

Croatian National Bank Regulations

The Croatian National Bank has also seen changes, with updates to its regulations aimed at:

  • Improving Financial Stability: Enhancing the country’s financial stability through revised supervisory powers over credit institutions.
  • Supervisory Powers Over Credit Institutions: Strengthening the regulatory framework for credit institutions to ensure their compliance with banking regulations.

New Acts Introduced

Additionally, new acts have been introduced to regulate:

  • Foreign Exchange Operations: Improved guidelines for foreign exchange transactions to promote transparency and fairness.
  • Electronic Money: Regulated electronic money services to enhance consumer protection.
  • Resolution of Credit Institutions and Investment Firms: Strengthened rules for the resolution of credit institutions and investment firms to ensure financial stability.

Conclusion

The amendments are seen as a positive step forward for Croatia’s financial sector, aimed at promoting stability, efficiency, and transparency in the country’s payment systems and financial markets.