Money laundering is one of the most globally represented criminal activities by which an individual or an organization is trying to disguise the ownership of an asset aquired by criminal activities and display it as if it was legatimetly aquired. There is a wide array of methods and techniques which criminals use to „launder“ their money and this thesis will showcase them aswell as the phases of money laundering and most common indicators of these activities in countries and institutions. Many regulations exist with the goal of preventing money laundering and terorrism financing activities and this paper will outline the most important ones for croatian and international regulatory framework. This paper will also outline the most important institutions focused on containing money laundering and terorrism financing activities and their recommendations for lowering individuals money laundering related risk and containment of those types of activities. Money laundering always represented a very dynamic problem present in almost every country in the world because of its destructive capability regarding to the economic processes of a country. The COVID-19 pandemic acted as catalyst for these types of activities and showcased the systems weaknesses (i.e. insufficient knowledge or obsolete/outdated technology) with dealing with such activities and that is why this thesis is aiming to better inform the readers about the existing money laundering and terorrism financing risks, aswell as serving as tool for preparation and protection from these types of risks in the future.