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Slovakia’s Financial Regulators Work to Strengthen Anti-Money Laundering (AML) Framework Amid International Concerns

As a member of the European Union, Slovakia is committed to combating money laundering and terrorism financing within its borders and contributing to the global fight against illicit economic activities. The country’s finance industry and economy have been negatively impacted by money laundering, prompting the implementation of stringent AML regulations and laws.

Money Laundering in Slovakia: Overview

Money laundering, including crimes such as auto theft, contraband, tax fraud, arms, and illegal drug smuggling, has been an issue in Slovakia. The country’s geographical location in eastern and southeastern Europe makes it a transit and destination country for laundering proceeds acquired from these illicit activities. Slovakia’s open economy, with exports amounting to approximately 92.36% of its GDP, also makes it a lucrative target for money laundering.

The Financial Action Task Force (FATF) Status

The FATF completed a follow-up Mutual Evaluation Report on Slovakia’s progress in implementing AML and counter-terrorist financing (CTF) standards in 2022. The evaluation uncovered that Slovakia was Compliant for five and Nearly Compliant for 22 of the FATF’s 40 recommendations. The country scored Highly Effective for zero and Substantially Effective for one of the Effectiveness and Technical Compliance assessments, indicating areas where further improvements are required to ensure full compliance and enhanced effectiveness.

Regulatory Institutions in Slovakia

Slovakia’s regulatory institutions play a vital role in reducing the impact of money laundering activities. The Financial Intelligence Unit (FIU) oversees compliance with the Slovak AML Act and monitors regulatory institutions, including:

  • The Financial Directorate of the Slovak Republic
  • Tax and customs offices
  • The National Bank of Slovakia

Before audit activities begin, the FIU and relevant supervisory authorities are notified of any investigations involving the entities being audited. In cases of unusual business transactions or non-compliance with Slovak AML regulations, administrative sanctions imposed on obliged entities must be reported to the FIU.

Obliged Institutions under Slovak AML Law

Under the Slovak AML Act, specific institutions are obligated to comply with AML regulations and report any suspicious transactions. These institutions include:

  • Banks
  • Stock exchange businesses
  • Securities warehouses
  • Management companies
  • Tax and economic consultants
  • Insurance companies offering some services
  • Auditors
  • Accountants
  • Post offices
  • Lawyers
  • Notary officers

AML Solutions for Slovakia

Sanction Scanner offers advanced AML solutions designed to help Slovakian businesses adhere to the country’s AML regulations, ensuring the long-term success of their operations. Interested companies can easily connect with us through our website for a demo of our comprehensive AML solutions. Together, we can embark on a journey toward a more secure and compliant business environment.

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