Preventing Terrorist Financing and Proliferation of Weapons of Mass Destruction: Croatia Takes a Stand
National Bank and Financial Institutions Take Extra Precautions
Zagreb, Croatia - The Croatian National Bank has issued guidelines for financial institutions to follow in their supervision of transactions, aiming to prevent terrorist financing and the proliferation of weapons of mass destruction.
Declaration of Cash Movements
According to Article 40 of the Foreign Exchange Act, natural persons entering or leaving the European Union are required to declare any cash movements of EUR 10,000.00 or more on a Cash declaration form.
National Assessment of Money Laundering and Terrorist Financing Risks
Croatia conducts a national assessment of money laundering and terrorist financing every four years. This assessment evaluates the institutional structure and procedures of each stakeholder in the financial sector, providing an overall score indicating their exposure to these risks.
Action Plan for Reduction of Identified Money Laundering and Terrorist Financing Risks
Based on this assessment, the Republic of Croatia has adopted an Action Plan for the Reduction of Identified Money Laundering and Terrorist Financing Risks. This plan is guided by supranational risk assessments, recommendations from the European Commission, and joint opinions from European Supervisory Authorities.
Applicable EU Regulations
Several EU regulations are directly applicable in Croatia, including:
- Commission Delegated Regulation (EU) 2018/1108 on criteria for central contact points for electronic money issuers and payment service providers
- Regulation (EU) 2015/847 on information accompanying transfers of funds
- Regulation (EC) No 1889/2005 on controls of cash entering or leaving the Community
Enhanced Due Diligence Measures for High-Risk Third Countries
Croatia has implemented enhanced due diligence measures for high-risk third countries, jurisdictions with strategic deficiencies in their national anti-money laundering and terrorism financing regimes. These measures aim to mitigate the risk of money laundering and terrorist financing by requiring financial institutions to apply stricter standards when dealing with natural persons and legal entities established in these countries.
Commitment to Preventing Terrorist Financing and Proliferation
In a statement, the Croatian National Bank emphasized its commitment to preventing terrorist financing and the proliferation of weapons of mass destruction. “We are taking all necessary steps to ensure that our financial system is secure and transparent, and that we are not inadvertently supporting illegal activities,” said a spokesperson for the bank.
Implementation of Measures
The implementation of these measures demonstrates Croatia’s determination to play an active role in combating global threats to financial stability and national security.