MONEYVAL finds that Croatia has continued to strengthen its AML/CFT framework since its 5th-round evaluation, with improvements in risk understanding and legal frameworks, but still needs to address gaps in supervision, prosecutions and effectiveness outcomes

The Third Enhanced Follow-Up Report on Croatia’s 5th-round AML/CFT assessment notes that the country has enacted legislative amendments, improved its risk assessment processes and enhanced targeted financial sanctions implementation. However, MONEYVAL concludes that Croatia must further improve the effectiveness of its supervisory systems, increase the number and quality of prosecutions and confiscations, and strengthen practical application of measures across sectors to fully meet international standards.