The Money Laundering Prevention System
Sonja Cindori, Faculty Of Economics And Busines, Maribor, Slovenia
Aleksandra Murks, Ministry of Finance, Anti-Money Laundering Directorate, Zagreb, Croatia
The paper presents the money laundering and terrorist financing prevention system in Croatia. The basic concepts are defined, the principles and fundamentals of international regulations analysed, and the regulatory system in Croatia covered by statute and money laundering prevention Regulations is presented, in conjunction with a description of the organisation, remit and international actions of the Money Laundering Prevention Office. The infiltration of dirty money is a crucial problem from national economies. The purchase of shares, of real estate, the establishment of dirty investment funds and the use of the banking system for the embedding of such resources is a danger to the credibility of a whole country, and in particular to the security of the financial and banking system. Croatia has adopted statutory measures aimed at the effective detection and prevention of suspicious financial transactions, in other words the prevention of money laundering. Launderers constantly find new ways, make use of new non-financial channels and expand their activities to real estate, artworks and insurance. Hence it is necessary to keep up with European approaches and recommendations, to strive for further improvement of the laws and the modernisation of the system, and to adopt new regulations harmonised with international standards, particularly with Directive 2005/60/EC.
Keywords: money laundering, terrorist financing, prevention, harmonisation with international standards, due diligence, reporting suspicious transactions
Year: 2007 | Volume: 31 | Issue: 1 | Pages: 59 - 76
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I / 2007