The phenomenon of money laundering is a worldwide problem that does not know national borders and requires a global solution. The degree of organization that typically characterizes it, the sophistication and diversity of its methods, and its international character, and the undoubted fact that most organized crime crimes are characterized by welth gain as a primary motive, with money laundering being an associated crime, undoubtedly makes this offense one of the most dangerous crimes of today. The paper analyzes and presents money laundering as a phenomenon with transnational elements, the prevention system of money laundering and terrorist financing in Croatia based on risk assessment and the role of the financial intelligence units in the prevention of money laundering. The paper addresses the concept of money laundering, stages of money laundering, basic principles, international regulations, criminal law guidelines and EU Directives , the normative structure in Croatia covered by the regulations and the Law on Prevention of Money Laundering and Financing of Terrorism. The paper outlines and addresses the most important actions and procedures that the obliged entities are required to take to prevent and detect money laundering and terrorist financing.