Money laundering and terrorist financing are global problems on the rise, especially during the twenty-first century. The essence of these criminal activities is the creation of financial benefits and legal assets from illegally acquired funds. Laundered funds that enter legal circulation are often created by restricting or exploiting the human species through illegal actions. Funds acquired in such manner are sometimes used to achieve the goals of terrorist activities that threaten the existence of people or a certain nation. Money laundering and terrorism thus form an interconnected chain that undermines social security and causes a feeling of helplessness in society. To prevent the circulation and further flow of laundered money, competent state institutions and international bodies supervise the operations of taxpayers who, through their work, analyses, and supervision of the parties, contribute to the timely detection of money laundering. The final thesis describes the methodology and typology of money laundering and terrorist financing and investigates into the functioning and obligations of each body at the national and international level within the body of the system for preventing money laundering and terrorist financing. The analysis of the trend of reported suspicious transactions in the Republic of Croatia in the last five years shows how the Office for the Prevention of Money Laundering operates concerning foreign standards and expectations as well as regulated laws and regulations. By research and analysis of the topic, it was concluded that it is necessary to continuously monitor the methods by which money launderers try to evade the previous rules, and in accordance with this to change the laws, as well as to familiarize and inform the public about the negative effects that money laundering brings to society.