Financial Crime World

Croatian Authorities Investigate Suspicious Financial Transactions

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Croatian authorities have uncovered several instances of suspicious financial transactions involving cash withdrawals and international remittances. The findings suggest possible links to predicate crimes such as fraud, usury, tax evasion, human trafficking, and illegal trading.

Large Cash Withdrawals Raise Suspicions

  • A domestic natural person made multiple cash withdrawals from different companies’ giro accounts in the same commercial bank on a single day, totaling HRK 200,000 to HRK 300,000.
  • Although individual transactions were below the legal threshold, the large volume of cash withdrawals raised suspicions.

International Remittances Under Scrutiny

  • Foreign natural persons with temporary residence in Croatia remitted cash funds internationally through companies performing payment services.
  • The receivers and senders of these remittances came from various countries, including Russia, Ukraine, the United States, Germany, Israel, Nigeria, Mali, Liberia, and others.
  • There were no declared earnings to justify the source of the cash funds.

False Bank Securities Scandal

  • Several domestic natural persons raised funds from other investors with the aim of establishing a bank in Croatia with foreign ownership.
  • The raised funds were used for currency trading, and securities issued to investors turned out to be false and worthless.

Lines of Credit Investigation

  • An investigation into lines of credit revealed that several domestic natural persons established a domestic legal entity by contributing their own real estate.
  • International remittances of large value were made in favor of foreign currency accounts held by the same individuals under the remittance order of a foreign company from an offshore financial center.

Ongoing Investigation

The Croatian authorities are working to determine if these transactions are linked to predicate crimes, including fraud, participation in organized criminal groups, and human trafficking. The investigation is ongoing, and further information will be released as it becomes available.