Title: Croatia’s Anti-Money Laundering Strides: MONEYVAL Report Highlights Progress
Croatia’s Advancements in Preventing Money Laundering and Terrorist Financing
A recent report by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) reveals that Croatia has made substantial progress in enhancing its preventive measures against money laundering and terrorist financing.
Significant Developments in Croatia’s AML/CFT Framework
Since late 2021, Croatia has taken the following steps to strengthen its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework:
- Amendments to legislation: Addressing gaps in areas like customer due diligence, third-party reliance, and correspondent banking.
- External accountants: Brought under AML/CFT obligations.
- Cash transportation: Introduced a disclosure system for cash transportation.
- Enhanced international cooperation: Established greater powers for competent authorities.
Recognized Progress from MONEYVAL
MONEYVAL’s follow-up report acknowledges advancements in several areas, including:
- National action plan: Adoption and implementation.
- Registration regime: Introduction for VASPs.
- Fit and proper requirements: Implementation for VASPs.
- Beneficial ownership registers: Improvements to access and transparency.
Current Ratings and Future Actions
Despite noticeable progress, Croatia continues to be under MONEYVAL’s enhanced follow-up procedure, with the following current ratings for each FATF Recommendation:
| Recommendation | Rating |
|---|---|
| 5 | Compliant |
| 23 | Largely Compliant |
| 12 | Partially Compliant |
The country is anticipated to provide updates on further advancements in their AML/CFT system by December 2024.
MONEYVAL’s Role in Global Anti-Money Laundering and Counter-Terrorist Financing Systems
MONEYVAL, a monitoring body of the Council of Europe, plays a critical role in assessing countries’ compliance with primary international standards against money laundering, terrorist financing, and the financing of weapons of mass destruction. It evaluates 33 states and territories and provides recommendations for improvements, contributing significantly to robust global anti-money laundering and counter-terrorist financing systems.