MONEYVAL Follow-Up Report Notes Progress and Remaining Gaps in Croatia’s AML/CFT Framework

Croatia has strengthened its framework for combating money laundering and the financing of terrorism, but further work is still required to fully address remaining weaknesses, according to a follow-up report adopted by MONEYVAL, the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism.

The assessment finds that Croatia has achieved significant progress in remedying technical compliance shortcomings that previously affected the implementation of the Financial Action Task Force (FATF) standards related to non-profit organisations, specifically under Recommendation 8. These improvements have addressed the identified deficiencies to a large extent, reflecting continued efforts by the authorities to align national measures with international standards.

In its overall evaluation, MONEYVAL reports that Croatia’s level of compliance across the 40 FATF recommendations is largely positive. The country is currently rated as compliant with seven recommendations and largely compliant with twenty-seven recommendations, while three recommendations are assessed as partially compliant. Importantly, none of the FATF recommendations have been rated as non-compliant.

Based on these findings, and in accordance with its rules of procedure, MONEYVAL has taken into account the timing of Croatia’s next mutual evaluation, which is scheduled to take place in the spring of 2030 as part of the sixth round of assessments. In light of this upcoming onsite visit and the progress achieved so far, MONEYVAL has decided that Croatia will no longer remain under the fifth-round follow-up process.

By fLEXI tEAM