Croatia improved its measures to combat money laundering and terrorist financing , concludes MONEYVAL in a follow-up report released today. This report focuses on Croatia’s progress on improving the level of compliance with the Financial Action Task Force (FATF) Recommendations 1 (Assessing risks and applying a risk-based approach), 2 (National co-operation and co-ordination), 10 (Customer due diligence), 13 (Corresponding banking), 15 (New technologies), 17 (Reliance on third parties), 22 (Designated non-financial businesses and professions (DNFBPs): customer due diligence), 23 (DNFBPs: other measures), 24 (Transparency and beneficial ownership of legal persons), 32 (Cash couriers), 40 (Other forms of international co-operation).
Since December 2021, Croatia has taken numerous steps to strengthen its anti-money laundering and terrorist financing (AML/CFT) systems. The AML/CFT legislation as amended addressed significant shortcomings, notably in relation to customer due diligence measures, third-party reliance and correspondent banking. It also brought external accountants under the scope of application of AML/CFT obligations and introduced a disclosure system for the incoming and outgoing transportation of cash. New procedures reinforced the international co-operation powers of competent authorities.
Progress was also noted in the adoption of a national action plan, the introduction of a registration regime and fit and proper requirements for virtual asset service providers (VASPs), improvements to beneficial ownership registers, streamlined access to information on legal persons and changes to sanctions for non-compliance with transparency requirements.
Whilst recommendations 1, 2, 15 and 24 remain rated Partly Compliant, the country has been re-rated on recommendations 10, 17, 22, 23, 32 and 40 from Partially Compliant to Largely Compliant and from Partially Compliant to Compliant on Recommendation 13.
Overall, Croatia has made progress in addressing the technical compliance shortcomings identified in its 2021 Mutual Evaluation Report. Out of the 40 Recommendations, Croatia currently has:
• 5 Recommendations rated Compliant
• 23 Recommendations rated Largely Compliant
• 12 Recommendations rated Partially Compliant
Croatia remains under MONEYVAL’s enhanced follow-up procedure and is expected to report back to MONEYVAL on further progress made towards strengthening its AML/CFT system in December 2024.
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The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) is a monitoring body of the Council of Europe entrusted with the task of assessing compliance with the principal international standards to counter money laundering, the financing of terrorism and the financing of proliferation of weapons of mass destruction, as well as the effectiveness of their implementation. MONEYVAL evaluates 33 states and territories (*) and makes recommendations to national authorities in respect of necessary improvements to their anti-money laundering and counter terrorist financing systems and to counter proliferation financing.
