Financial Crime World

Croatia Strengthens Fight Against Money Laundering and Terrorist Financing

Progress Made in Anti-Money Laundering and Terrorist Financing Framework

A recent report by MONEYVAL highlights significant progress made by Croatia in strengthening its anti-money laundering and terrorist financing (AML/CFT) systems. The assessment indicates that the country has addressed several shortcomings identified in a previous evaluation.

Key Recommendations Addressed

Croatian authorities have taken numerous steps to improve their AML/CFT framework since December 2021, including:

  • Legislative amendments: Amendments to legislation addressing customer due diligence measures, third-party reliance, and correspondent banking.
  • Disclosure system for cash transportation: The introduction of a disclosure system for cash transportation.
  • Enhanced international cooperation powers: Changes to sanctions for non-compliance with transparency requirements.

Progress in Key Areas

The report notes progress in the following areas:

  • National action plan: Adoption of a national action plan to combat financial crime.
  • Virtual asset service providers (VASPs): Registration regime for VASPs has been introduced.
  • Beneficial ownership registers: Improvements have been made to beneficial ownership registers.
  • Access to information on legal persons: Streamlined access to information on legal persons.
  • Sanctions for non-compliance: Changes to sanctions for non-compliance with transparency requirements.

Recommendations Re-Rated

As a result of these efforts, several recommendations have been re-rated from Partially Compliant to Largely Compliant or Compliant. While recommendations 1, 2, 15, and 24 remain Partly Compliant, Croatia now has five recommendations rated as Compliant, 23 as Largely Compliant, and 12 as Partially Compliant.

Enhanced Follow-Up Procedure

Croatia remains under MONEYVAL’s enhanced follow-up procedure and is expected to report back on further progress by December 2024. The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) monitors compliance with international standards to combat financial crime, evaluating 33 states and territories and making recommendations for necessary improvements.