Croatia’s Anti-Money Laundering Efforts: A Comprehensive Overview
National Framework for Preventing Money Laundering and Terrorist Financing
The Republic of Croatia has established a robust legislative framework to prevent money laundering and terrorist financing, with several key laws and regulations in place. The primary legislation is the Anti Money Laundering and Terrorist Financing Law (OG 108/2017), which serves as the foundation for Croatia’s anti-money laundering efforts.
EU Legislation Directly Applicable in Croatia
Several EU directives and regulations are directly applicable in Croatia, including:
- Commission Delegated Regulation (EU) 2018/1108: Criteria for appointment of central contact points for electronic money issuers and payment service providers
- Regulation (EU) 2015/847: Information accompanying transfers of funds
- Regulation (EC) No 1889/2005: Controls of cash entering or leaving the Community
National Assessment of Risks
The Croatian government conducts a national assessment of money laundering and terrorist financing risks every four years to identify areas of vulnerability and implement strategies for mitigation. The assessment is based on institutional structure and procedures, with scores indicating overall exposure and vulnerability.
Action Plan to Reduce Identified Risks
The Action Plan for Reduction of Identified Money Laundering and Terroristic Financing Risks in Croatia is based on national assessment results. The plan takes into account supranational risk assessments, European Commission recommendations, and joint opinions of European supervisory authorities.
High-Risk Third Countries
Croatia recognizes high-risk third countries with strategic deficiencies in their anti-money laundering and terrorism financing regimes. Union obliged entities are required to apply enhanced due diligence measures for natural persons and/or legal entities from such countries.
Recent Developments
The European Parliament and the Council of the EU recently adopted Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets, amending Directive (EU) 2015/849. This regulation strengthens anti-money laundering efforts in Croatia and across the EU.
Conclusion
In conclusion, Croatia has established a robust framework to combat money laundering and terrorist financing. The country’s efforts are guided by national assessments, EU legislation, and international cooperation, ensuring a high level of financial integrity.