Terrorist Financing Risks in Croatia Pose Serious Threat to Financial System

Experts Warn of Significant Risk to Stability and Integrity of Croatia’s Financial System

Money laundering and terrorist financing pose a significant risk to the stability and integrity of Croatia’s financial system, according to experts. To prevent these illegal activities, close cooperation between national and international authorities is crucial.

Prevention Measures

The Republic of Croatia has implemented the Anti-Money Laundering and Terrorist Financing Act to combat these threats. The Croatian Financial Services Supervisory Agency (Hanfa) is responsible for overseeing the implementation of this act by its supervised entities.

In addition to its supervisory activities, Hanfa:

• Cooperates with other national and international authorities in the anti-money laundering/counter-terrorism financing (AML/CTF) area
• Organizes education for institutions it supervises
• Issues guidelines for implementing regulations in the AML/CTF area
• Carries out other tasks related to preventing money laundering and terrorist financing

Requirements for Financial Institutions

The Anti-Money Laundering and Terrorist Financing Act sets out a range of requirements for financial institutions and other entities subject to the act, including:

• Conducting a risk assessment
• Having policies and procedures in place to mitigate and manage risks
• Taking customer due diligence measures
• Appointing authorized personnel
• Providing regular training and education
• Drawing up lists of indicators
• Reporting data
• Ensuring data storage and protection
• Fulfilling other obligations

Consequences for Non-Compliance

The act also prescribes misdemeanor provisions, including:

• Fines
• Bans on carrying out financial transactions

Experts warn that the risk of money laundering and terrorist financing is high in Croatia and that it is essential to take steps to prevent these illegal activities.