Croatia introduces new cash declaration rules

ZAGREB, 6 March 2026 (Hina) – The Croatian Parliament has adopted a new Foreign Exchange Law introducing stricter rules on cash movements and regulating authorised currency exchange businesses, aligning national legislation with broader European Union efforts to combat money laundering and terrorist financing.

The law, approved on Friday, introduces an obligation to declare cash of €10,000 or more when it is brought into or taken out of Croatia from another EU member state.

Under the new rules, travellers may be required to declare unaccompanied cash worth €10,000 or more entering or leaving Croatia to the Customs Administration. This includes cash sent through post, freight or courier shipments, a provision designed to close gaps previously exploited for illicit financial activity.

Customs authorities will also gain the power to initiate misdemeanour proceedings in the first instance in cases where declaration rules are breached.

The legislation forms part of a wider EU regulatory framework aimed at improving monitoring of cross-border cash flows and strengthening the fight against money laundering and terrorism financing.

The EU first introduced a regulation on controlling cash entering or leaving the Union in 2005, requiring individuals to declare currency or bearer negotiable instruments valued at €10,000 or more.

Evaluations of the original Cash Control Regulation found that, although effective overall, it had several weaknesses.

These included limited coverage of cross-border movements, the absence of provisions for cash sent through shipments, and difficulties in exchanging information between national authorities.

The updated EU framework expands the definition of cash to include several categories, such as traditional currency, bearer negotiable instruments, highly liquid commodities used as stores of value and prepaid cards.

Individuals carrying €10,000 or more must submit a declaration either in writing or electronically, providing detailed information about the funds.

EU lawmakers have described the strengthened framework as a major step forward in tackling financial crime. Finnish MEP Eero Heinäluoma previously called the agreement on EU-wide anti-money laundering rules a “historic victory” against money laundering and terrorist financing, while Czech MEP Luděk Niedermayer said the reforms would help close loopholes that had made it easier for criminals to move illicit funds.

Adjusting Croatian law after euro adoption

Presenting the law earlier, State Secretary at the Ministry of Finance Matej Bule explained that Croatia’s legislation needed to be updated following the liberalisation of capital flows, the introduction of the euro, and the transfer of monetary policy powers to the European Central Bank.

The law also clarifies reporting obligations to the Croatian National Bank (HNB) regarding financial transactions with foreign entities, with the central bank authorised to set detailed reporting requirements.

Changes for currency exchange businesses

The legislation also fully regulates the operations of authorised currency exchange offices.

Among the key changes:

• Branches of foreign companies whose parent firms hold exchange licences abroad will now be able to operate exchange services in Croatia.

• The requirement for exchange offices to sign contracts with commercial banks has been abolished.

• Banks will no longer be obliged to buy foreign currency from exchange offices.

• Exchange offices will be allowed to sell foreign currency not only for cash but also through payment cards.

Officials say the sector has already undergone significant changes since Croatia adopted the euro.

According to State Secretary Tereza Rogić Lugarić, the country lost around 1,100 exchange offices following the currency switch, with numbers dropping from about 1,300 to roughly 200.

“Despite the reduction, these remaining exchange offices still need to be properly regulated,” she said during the parliamentary debate on the new law.

The new Foreign Exchange Law is part of a broader EU push to strengthen financial oversight, improve information sharing between authorities, and prevent criminals from exploiting regulatory loopholes across member states.