Changes to Pension System Adopted to Prevent Money Laundering

By 2 March 2018

ZAGREB, March 2, 2018 - The Croatian government on Thursday tabled draft amendments to the law on non-compulsory pension funds and to the law on pension insurance companies to incorporate recommendations of the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL).

The amendments that were sent into fast-track parliamentary procedure include the recommendations of the MONEYVAL and are adjusted to the European Union's directive on minimum requirements for enhancing worker mobility between member states by improving the acquisition and preservation of supplementary pension rights.

MONEYVAL is a permanent monitoring body of the Council of Europe entrusted with the task of assessing compliance with the principal international standards to counter money laundering and the financing of terrorism and the effectiveness of their implementation, as well as with the task of making recommendations to national authorities in respect of necessary improvements to their systems.

Addressing the government's meeting, Labour and Pension System Minister Marko Pavić said that currently there were nearly 300,000 people that pay pension insurance contributions in non-compulsory 3rd pillar that had four billion kuna collected to date.

Currently, 92 billion kuna is available in the second, compulsory pension pillar.