Croatia Added to Grey List by Financial Action Task Force for Money Laundering Concerns

International Financial Watchdog Raises Concerns over Croatian Financial Regulations

The Financial Action Task Force (FATF), an international financial crime watchdog, has added Croatia to its “grey list” of countries under increased monitoring due to deficiencies in preventing money laundering and terrorism financing. This move has raised concerns about the country’s financial regulations.

Countries on the Grey List

Croatia is now joined by the United Arab Emirates, Panama, and Mali as a country under increased monitoring. The FATF requires these countries to implement an action plan to resolve strategic deficiencies within agreed timeframes.

Croatian Government’s Action Plan

The Croatian government has committed to an action plan aimed at improving its compliance with anti-money laundering regulations. The plan includes:

• Assessing risks associated with the misuse of legal persons and legal arrangements
• Identifying vulnerabilities in the use of cash in the real estate sector

Urgency for Implementation

FATF Chairman T Raja Kumar has urged Croatia to implement this action plan as soon as possible.

FATF’s Warning on Emerging Risks

The FATF also warned about the need for vigilance against current and emerging risks from the circumvention of measures taken against Russia, which was suspended from membership earlier this year. No countries were removed from the grey list following the FATF’s recent meeting in June.

This development highlights the importance of effective financial regulations to prevent money laundering and terrorism financing. Croatia must now work to implement its action plan and address the concerns raised by the FATF.