Croatia Takes Steps to Combat Money Laundering and Terrorist Financing
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The Croatian government has launched an initiative to assess the risks of money laundering and terrorist financing in the country, with a focus on identifying vulnerabilities and strengthening measures to prevent these illegal activities.
National Risk Assessment
According to Article 5 of the new law, the national money laundering and terrorist financing risk assessment will be coordinated by the Inter-institutional Working Group for the Prevention of Money Laundering and Terrorist Financing. The group’s tasks include:
- Implementing the national risk assessment
- Preparing a report on its findings
- Developing an action plan to mitigate identified risks
The national risk assessment is expected to identify sectors or activities that are particularly vulnerable to money laundering and terrorist financing, as well as areas where reporting entities need to apply enhanced measures to prevent these illegal activities. The assessment will also provide guidance for the distribution of resources and funds designated for anti-money laundering and counter-terrorism efforts.
Reporting Entities Must Take Action
The new law requires reporting entities, including:
- Credit institutions
- Investment funds
- Insurance companies
- Others
to take measures to detect and prevent money laundering and terrorist financing. These entities must:
- Apply enhanced due diligence procedures when dealing with high-risk transactions or customers
- Report suspicious activities to the competent authorities
- Implement internal controls and training programs for employees to ensure that they are aware of the risks and procedures for preventing money laundering and terrorist financing.
Enhancing International Cooperation
Croatia’s efforts to combat money laundering and terrorist financing demonstrate its commitment to international cooperation and compliance with EU regulations. By working closely with other member states, the European Commission, and supranational bodies, Croatia can ensure that its anti-money laundering and counter-terrorism measures are effective and aligned with global best practices.
Conclusion
The implementation of this law is a significant step forward in Croatia’s efforts to prevent money laundering and terrorist financing, and will help to strengthen the country’s financial sector and protect its citizens from these illegal activities.