The importance of appropriate and effective supervision has been increasingly emphasised by regulatory bodies at both European and international levels. The link between conducting effective risk-based Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) supervisory activities, and the resources and capacity of AML/CFT supervision teams has also been increasingly emphasised in FATF evaluation reports and similar assessments undertaken by European bodies.
In this regard, as part of its current efforts aimed at supporting the Croatian Financial Services Supervisory Agency (Hanfa) with enhancing its AML/CFT risk-based approach to supervision, the Council of Europe’s Economic Crime and Cooperation Division (ECCD) is providing tailored technical assistance to the beneficiary institution in enhancing its organisational structure in the field of AML/CFT, including its allocation of resources. 

The ECCD has for instance conducted a needs assessment which looked into Hanfa’s current human resources and supervisory responsibilities and the way these may need to evolve to allow it to appropriately and effectively fulfil its oversight duties. Based on the findings, the ECCD has proposed possible alternatives for the reallocation of resources, to ensure that Hanfa can effectively undertake AML/CFT risk-based supervision and that its supervisory activities are commensurate with both the obliged entity community it oversees and the increasing complexity of the AML/CFT threats and vulnerabilities landscape. 

The needs assessment’s key findings and follow-up suggestions were further presented and discussed with Hanfa representatives during an online workshop organised on 22 February 2022. The workshop provided most notably the opportunity to reflect on different scenarios of resources’ reallocation that would enhance the effectiveness of Hanfa’s supervisory activities.

The event was organised within the framework of the Technical Support Instrument initiative “Risk-Based Supervision of Anti-Money Laundering and Countering the Financing of Terrorism in Croatia”, funded by the European Commission’s Directorate General for Structural Reform Support (DG REFORM) and the Council of Europe and implemented by the Council of Europe.