Money laundering is a phenomenon of the modern age, that appeared with the existence of a shadow economy, the main characteristic of which is concealment or intentional failure to register the realized business. Due to the fact that money laundering is taking place often in the territory of several countries, and due to technological innovations it is taking more and more forms and new techniques, the process itself becomes more complex and thus more difficult to notice. Financial institutions such as banks, auditors, tax advisers and accountants because of their nature of work, as financial service providers, are being used by mobs at all stages of money laundering. To successfully prevent money laundering, a series of measures, procedures and stringent laws are required. It should be emphasized that the process of discovering whether it is a matter of money laundering is not at all simple. Money laundering is often a process that takes place in two or more countries, which is one way to conceal the source of money. Therefore, it is extremely important that every state has organized legal frameworks at the national level and in accordance with international cooperation. Croatia, as a member of the European Union and the UN, is obliged to harmonize its laws as well as to co-operate in order to prevent criminal activities in the territory of the state and other members of organizations. In the end, money laundering also causes sociological effects that result from economic consequences. Material damages set back society and lead to moral consequences such as loss of social trust, inequality in the availability of opportunities, negative stratification of society, growth of social injustice and frustration and, to the extreme, the apathy of society