Question to the HM Treasury:

To ask His Majesty's Government what implications the presence of Croatia on the Financial Action Task Force grey list has for the provision of British banking services in relation to that country.

The Financial Action Task Force (FATF) publicly lists jurisdictions with weak anti-money laundering and counter terrorism financing regimes. The Money Laundering Regulations 2017 (MLRs) require regulated businesses, including banks, to undertake ‘enhanced due diligence’ in respect of business relationships and transactions involving countries on the FATF’s lists, defined as ‘High Risk Third Countries’.

Croatia was listed by the FATF in June 2023, so is a High Risk Third Country for the purposes of the MLRs. While enhanced due diligence measures are required, there is no expectation that services linked to a particular country should be withdrawn due to a country’s listing by the FATF.