CROATIA TIGHTENS THE SCREWS ON MONEY LAUNDERING
Zagreb, Croatia - In a bid to combat money laundering and terrorist financing, Croatia has implemented a robust Anti-Money Laundering (AML) framework that aligns with European Union directives and international standards.
The Heart of Croatia’s AML Regime
At the core of Croatia’s AML regime is the Anti-Money Laundering and Terrorist Financing Prevention Act (AML/TF Act). This law requires financial institutions and designated non-financial businesses to implement Customer Due Diligence (CDD) measures, including:
- Verifying customer identity
- Assessing customer risk profile
Enhanced Due Diligence for High-Risk Customers
Enhanced due diligence is required for politically exposed persons (PEPs) and high-risk customers. Reporting entities must also report suspicious transactions to the Financial Intelligence Unit (FIU), a move that has been hailed as a major step in preventing money laundering activities.
The Role of the Financial Intelligence Unit (FIU)
“Timely reporting is crucial in identifying and preventing money laundering,” said an official from the FIU. “We work closely with law enforcement agencies to ensure that suspicious transactions are investigated and appropriate action is taken.”
Maintaining Records and Providing AML Training
In addition to CDD, reporting entities must also maintain records of transactions, customer identification, and CDD measures for a specified period. Businesses must also provide AML training to their employees and establish internal procedures and controls to detect and prevent money laundering.
Supervision and Regulation
The Ministry of Finance oversees AML policies and regulations at the national level, while the Croatian National Bank (CNB) supervises banks and financial institutions for AML compliance. The CNB has implemented a number of measures to ensure that financial institutions have adequate AML policies and procedures in place.
Regulating AML/CFT Regulations
Croatia’s AML framework also includes the Anti-Money Laundering Office (AMLO), which is responsible for regulating AML/CFT regulations according to international standards. AMLO collects, examines, and transmits AML data to competent government bodies and requires banks and other financial institutions to report suspicious transactions detected.
Automating AML Checks with Sanction Scanner
Sanction Scanner, a software solution specializing in AML and CTF compliance, offers real-time screening against global sanction lists, PEP databases, and adverse media sources. With a comprehensive database covering over 200 countries, it enables businesses to automate AML checks, customize screening criteria, and enhance security, making it a valuable tool for international organizations seeking to mitigate financial risks.
International Recognition of Croatia’s Efforts
Croatia’s efforts to combat money laundering have been widely praised by international organizations and experts. As the country continues to implement its AML framework, it is expected to remain at the forefront of anti-money laundering efforts in Europe.