This thesis refers to the ways of implementing the policies of the Anti-Money Laundering and Terrorist Financing Law in managing business processes in commercial banks in the Republic of Croatia. The impact of the banking system on the economy is large. The banking system plays a key role in financial intermediation, especially in the processes of mobilization and redistribution of savings, and in payment systems. The stability of the banking system has special public interest. The problem of money laundering and terrorist financing is increasingly present at the international level, as well as at the national level. The globalization of markets and cash flows are in favour of the criminal milieu. Modern technologies and sophisticated payment systems make money laundering easier and enable new, modified methods of money laundering. The banking system is highly exposed to the risk of money laundering due to its size as well its importance in the financial system. Attempts are being made to control and reduce this risk by regulating it in line with international standards. The prevention of money laundering and terrorist financing in the Republic of Croatia is regulated by the Anti Money Laundering and Terrorist Financing Law. Banks, as obligated persons by the Law, have a duty to provide effective and efficient anti-money laundering and anti-terrorist financing systems that should be proportionate to their size, type, scope and complexity. They are also obliged to harmonize their business processes with the regulations of the Anti-Money Laundering and Terrorist Financing Law, which refers to the organizational structure, internal regulations and education of employees.