Financial Crime World

Croatia Launches Joint EU-CoE Project to Enhance Financial Crime Risk Assessment Tools

Strengthening Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) Regime

A virtual kick-off meeting was held on July 15, marking the launch of a joint project between the Council of Europe (CoE) and the European Union (EU) aimed at strengthening Croatia’s anti-money laundering/countering the financing of terrorism (AML/CFT) regime. The initiative is funded by the EU’s Directorate General for Structural Reform Support and the CoE.

Project Objectives

The project is designed to enhance the effectiveness of AML/CFT supervision in Croatia’s financial system through risk-based assessment tools. The objectives include:

  • Developing risk assessment methodologies
  • Creating supervisory tools and manuals for the Croatian National Bank (CNB) and the Croatian Financial Services Supervisory Agency (Hanfa)
  • Strengthening the supervisory capacities of both institutions, particularly in areas of risk-based AML/CFT supervision

Project Implementation

Representatives from CNB, Hanfa, EU’s DG REFORM, and CoE Economic Crime and Cooperation Division attended the kick-off meeting. The stakeholders expressed enthusiasm and commitment to implementing the project.

The first activities will involve reviewing the overall setup and resources for AML/CFT supervision conducted by CNB and Hanfa, as a step towards enhancing their risk assessment methodologies. The capacity-building activities will also enhance the ability of CNB and Hanfa to conduct effective AML/CFT supervision.

Expected Outcomes

The project is expected to have a positive impact on Croatia’s financial system, enhancing its resilience against financial crime. The development of risk assessment methodologies, supervisory tools, and manuals will play a significant role in strengthening the supervisory capacities of both institutions.

Project Timeline

The Technical Support Instrument project on “Risk-based supervision of anti-money laundering and financing of terrorism in Croatia” is expected to be implemented by the CoE over the next few months.