Croatia

New Documents

The European Central Bank issued a communiqué announcing the decision to include the Croatian kuna in the Exchange Rate Mechanism in light of Croatia’s commitment to implement an anti-money laundering framework.

The Council of Europe’s Group of States against Corruption published its fifth round evaluation report on Croatia’s efforts to prevent corruption among those entrusted with top executive functions.

News

Enforcement Actions

0 Items Found


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

Technical Effectiveness
Compliant : 7 High :
Largely Compliant : 25 Substantial :
Partially Compliant : 16 Moderate :
Non-Compliant : 0 Low :
Not-Applicable : 1

BASEL i

Rank : 119/141
Score : 3.95/10

TRANSPARENCY INTERNATIONAL i

Rank : 63/180
Score : 47/100

Tax Justice Network i

Rank : 93/133
Score : 55/100