Key Documents

Croatia Harmonizes Its AML/CTF Law with Third EU Money Laundering Directive

July 18, 2008

Croatia Enacts Law to Implement International Sanctions

November 27, 2008

Croatia Sets Law Governing Foreign Exchange Transactions

December 17, 2010

Croatia Establishes Office for Prevention of Corruption and Organised Crime

March 1, 2004

Croatian National Bank Issues AML/CTF Guidelines

June 18, 2012

Croatian Regulator Provides AML/CTF Guidelines for Financial Institutions

September 10, 2009

Important Facts

The U.S. State Department labels Croatia as a monitored jurisdiction. Croatia is not an offshore financial center. Croatian authorities consider most money laundering in the country to be domestically based, involving illegal narcotics sales and economic crimes, such as fraud and tax evasion. Money laundering occurs primarily through non-resident accounts, transfers to offshore banks using counterfeit documents and deposits in foreign currency accounts. Money laundering has also been linked to the real estate market and the purchase of high-end automobiles. Although Croatia is part of a major route for drugs entering Europe, there is little evidence that these networks have utilized Croatia’s financial systems. The country does not have a significant black market and the Export Border Security Office continues to tighten controls in order to prevent smuggling. Financial crime investigations are linked to abuse of power and embezzlement, in particular those involving state-owned enterprises.
KYC Covered Entities: Banks, loan brokers, and lending companies; savings banks and credit unions; companies that issue payment instruments, rent safe deposit boxes, or perform payment option services; the Croatian Post Office; investment funds and asset management companies; pension companies; financial service companies; insurance companies and brokers; authorized exchange offices; casinos and betting parlors; pawnshops; leasing firms; guarantors; dealers in precious metals, gems, art, or antiques; auctioneers; lawyers, notaries, auditors, accountants, and tax advisors
STR Covered Entities: Banks, loan brokers, and lending companies; savings banks and credit unions; companies that issue payment instruments, rent safe deposit boxes, or perform payment option services; the Croatian Post Office; investment fund and asset management companies; pension companies; financial service companies; insurance companies and brokers; authorized exchange offices; casinos and betting parlors; pawnshops; leasing firms; guarantors; dealers in precious metals, gems, art, or antiques; auctioneers; lawyers, notaries, auditors, accountants, and tax advisors
Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 2 (January – June 2015); Convictions: 9 (January – June 2015)

Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical	Effectiveness
Compliant : 4	High : 0
Largely Compliant : 17	Substantial : 1
Partially Compliant : 19	Moderate : 8
Non-Compliant : 0	Low : 2

BASEL i

Rank : 119/141

Score : 3.95/10

TRANSPARENCY INTERNATIONAL i

Rank : 63/179

Score : 47/100

Tax Justice Network i

Rank : 93/133

Score : 55/100

Croatia

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