This paper addresses the issue of money laundering in three parts: a theoretical part, a section about the Croatian preventive system, and the repressive system. Money laundering is the process of integrating illicit funds into the financial system and concealing their illegal origin. There are three stages of money laundering: placement, layering, and integration. This process has a negative impact on the economy, the financial system, and society as a whole. Therefore, it is necessary to create international standards to combat money laundering, as well as national legislation. The cornerstone of the Croatian anti-money laundering system is the Anti-Money Laundering Law, which regulates various measures and instruments to prevent money laundering. Entities like credit institutions, credit unions, insurance companies, investment funds, pension funds, etc. are obliged by law carry out different actions like: risk assessments, establishing policies, controls and procedures for mitigation of money laundering, conducting various prevention measures, reporting data, documentation, and transactions to the authorities. This law established the Anti-Money Laundering Office, a financial intelligence unit responsible for collecting and analyzing data acquired from the reporting entities. If there is any suspicion of money laundering, the Office is required by law to report it to the Public Prosecutor's Office. The last part of this paper deals with money laundering in the context of the Croatian criminal law system.