Cash-Happy Croatia Boosts Oversight to Shed ‘Gray’ Status (1)

Croatian authorities are stepping up scrutiny over cash transactions after the Balkan nation became the only European Union member state to be flagged by the global money-laundering and terrorist financing watchdog.

The Paris-based Financial Action Task Force last month placed Croatia on its “gray list” for increased monitoring, along with Cameroon and Vietnam. The designation flags shortcomings in efforts to fight laundering and terror financing, with nations under scrutiny committing to “swiftly resolve” deficiencies, according to a FATF statement on June 23.

Cash transactions are common in Croatia, even for major purchases. The Finance Ministry in Zagreb said its money-laundering ...