Croatia added to FATF's 'grey list' of countries

Friday 30 June 2023 11:02 CET | News

France-based global money laundering and terrorist financing watchdog Financial Action Task Force has added Croatia to its 'grey list'. 

Following this decision, Croatia is now the sole EU country member on the Financial Action Task Force’s (FATF) list. Alongside Croatia, the FATF has also included Cameroon and Vietnam on the list. 

As per the official statement, Croatia's inclusion on the 'grey list' – that features countries such as the UAE, Panama, or Mali – was based on shortcomings in its efforts to combat money laundering and terrorism financing. According to the chairman of the organisation, Croatia has committed to implement an action plan aimed at ensuring its compliance.

Among the action points on the plan are evaluating the potential hazards linked to the misuse of legal entities and legal arrangements, as well as the use of cash within the real estate industry.

France-based global money laundering and terrorist financing watchdog Financial Action Task Force has added Croatia to its 'grey list'.


The larger context 

The FATF’s main purpose is to coordinate global efforts aimed at combating money laundering, terrorist financing, and the funding of proliferation activities. More precisely, the organisation does research into how money is laundered and how terrorism receives financial support, and then promotes global standards to mitigate such risks. Apart from this, the watchdog also evaluates the effectiveness of countries' measures.

During the recent plenary meeting of the FATF, the organisation’s representatives emphasised on the crucial need for all jurisdictions to maintain a high level of vigilance concerning both current and emerging risks related to circumventing measures implemented against Russia. These measures are specifically designed to protect the integrity of the international financial system.

This development follows the FATF's February 2023 decision to suspend Russia's membership, after Russia's involvement in the war in Ukraine violated the principles upheld by the FATF. 

Russian officials strongly criticised the decision, labelling it as an imprudent action that could detrimentally impact global efforts that sought to combat money laundering, terrorism financing, and the proliferation of weapons of mass destruction.

Although it was suspended in February, Russia remains a member of the FATF. The main consequence of the FATF’s February decision translated in Russia being prohibited from participating in meetings, as well as accessing documents. 

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Keywords: compliance, money laundering, financial crime, FATF
Categories: Fraud & Financial Crime
Companies: Financial Action Task Force
Countries: Croatia (Hrvatska)
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Fraud & Financial Crime

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