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Croatia’s AML/KYC Regulations: What You Need to Know

As the financial landscape continues to evolve, businesses operating in Croatia must stay up-to-date with the country’s Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations. Shufti Pro, a leading provider of identity verification solutions, breaks down the key requirements for companies operating in the region.

Identity Verification: A Multi-Faceted Approach

In Croatia, identity verification is not a one-time process. Instead, it’s a multi-instance requirement that must be applied at various stages of customer onboarding and transaction processing. Companies are expected to verify identities when onboarding new customers, as well as in instances where higher risks are involved, such as transactions above a certain monetary threshold.

Politically Exposed Persons (PEPs) and Enhanced Due Diligence

Under Croatia’s AML regulations, companies must identify Politically Exposed Persons (PEPs) and conduct enhanced due diligence on individuals who exhibit a higher risk profile. Shufti Pro offers an AML Screening service that screens an individual’s ID attributes against watchlists of global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.

Reliance on External Services

Croatian regulations allow companies to seek the services of third-party providers for AML/KYC compliance. However, companies remain liable for maintaining all relevant data and fulfilling AML and KYC obligations.

Record Retention: A Critical Compliance Requirement

Companies operating in Croatia are required to retain customer data for a minimum of 10 years as part of their AML/KYC obligations. This includes collecting necessary information from third-party providers without undue delay.

Conclusion

Understanding Croatia’s AML/KYC regulations is crucial for businesses operating in the region. By staying compliant with these requirements, companies can minimize risks and ensure a secure financial environment for all stakeholders.