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Croatia Takes Strong Stance Against Terrorist Financing and Weapons of Mass Destruction Proliferation
Combating Money Laundering and Terrorist Financing Risks
Zagreb, Croatia - In a bid to prevent the financing of terrorism and the proliferation of weapons of mass destruction, Croatia has implemented a comprehensive set of guidelines aimed at combating money laundering and terrorist financing risks.
Declaration of Cash Movements
According to Article 40 of the Foreign Exchange Act, natural persons entering or leaving the European Union towards third countries are required to declare any cash movements of EUR 10,000.00 or more on a Cash Declaration Form. This measure is designed to track suspicious transactions and prevent the flow of funds to terrorist organizations and other illicit groups.
Guidelines for Obliged Entities
The Croatian National Bank has also issued guidelines for obliged entities to be guided by when carrying out supervision in accordance with the Anti-Money Laundering and Terrorist Financing Act. The guidelines aim to ensure that financial institutions are equipped to identify, assess, understand, and mitigate money laundering and terrorist financing risks.
National Assessment of Money Laundering and Terrorist Financing Risks
To further strengthen its efforts, Croatia conducts a national assessment of money laundering and terrorist financing risks every four years. The assessment covers the institutional structure and procedures of each stakeholder with a score indicating their overall exposure and vulnerability to money laundering and terrorist financing.
Action Plan for Reduction of Identified Money Laundering and Terrorist Financing Risks
Based on the results of the National Assessment, an Action Plan for the Reduction of Identified Money Laundering and Terrorist Financing Risks is adopted. This plan outlines measures to address identified risks and ensure that all obliged entities are equipped to mitigate potential threats.
EU Legislation
EU legislation also plays a crucial role in Croatia’s efforts to prevent terrorist financing and weapons of mass destruction proliferation. The country has implemented various regulations, including:
- Commission Delegated Regulation (EU) 2018/1108: sets out criteria for the appointment of central contact points for electronic money issuers and payment service providers
- Regulation (EU) 2015/847: on information accompanying transfers of funds, requiring financial institutions to provide detailed information about transactions involving large amounts of cash or other suspicious activities
Enhanced Due Diligence Measures
Croatia has also implemented enhanced due diligence measures for high-risk third countries, which are jurisdictions with strategic deficiencies in their national anti-money laundering and terrorism financing regimes. These measures require obliged entities to apply additional safeguards when dealing with individuals or companies from these countries.
International Recognition
The country’s efforts have been praised by international authorities, who recognize Croatia’s commitment to combating money laundering and terrorist financing risks. By implementing these robust guidelines and regulations, Croatia is demonstrating its determination to prevent the misuse of financial systems for illegal activities and protect its citizens from the threat of terrorism.
Photo Caption
Croatian National Bank logo
Contact Information
For more information on Croatia’s efforts to combat money laundering and terrorist financing risks, please contact [insert contact information].