The subject of the paper is the definition of the concept and structure of money laundering and tax havens. The introductory part defines the form of money laundering, its meaning in the international context and domestic legislation. The following sections elaborate the money laundering cycle through three phases: placement, layering and integration. They also explain the complexity of the money laundering process and name the indicators that can be used to identify the phenomenon. Money laundering is closely related to ˝off shore˝ zones. The paper also presents their characteristics as well as the factors of international reports on ˝off shore˝ structures. The structures are of great importance in the adoption of international and domestic acts in the fight against money laundering. The second part of the paper defines tax havens, their basic divisions and the consequences they have on economic and financial systems. The third and final part elaborates the anti-money laundering system in the Republic of Croatia. The system includes the measures, actions and procedures taken by taxpayers and competent state bodies to prevent and detect money laundering. It also includes preventive measures meant to stop the use of the financial money laundering system.