Financial Crime World

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Money Laundering Vulnerability in the Slovak Republic

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Overall ML Threat

The overall level of money laundering (ML) threat in the Slovak Republic is considered moderately high.

Factors Affecting Overall Vulnerability

The report identifies two key factors that affect the country’s overall vulnerability to money laundering:

  • Ability to fight against ML: The country’s ability to combat money laundering is moderate.
  • National economy sector vulnerability: This is medium-high, primarily due to the banking sector’s vulnerability.

Weaknesses in Fighting Against Money Laundering

The report highlights several weaknesses that hinder the country’s efforts to combat money laundering:

Insufficient Resources and Lack of Specialization

  • Insufficient staffing and financial resources: The Financial Services Joint (FSJ) lacks sufficient staff and funding, affecting its performance.
  • Lack of specialization: There is no specialized department for detecting the legalization of proceeds from criminal activity.

Information Systems and Property Seizure

  • Absence of a central bank account register: This makes it difficult to track online transactions.
  • Inadequate information systems: The police, prosecution, and court systems are not well-connected, making it challenging to verify and detect crimes.
  • Missing entity for managing seized assets: There is no Office for the Administration of Seized Proceeds and Things from Criminal Activity (AMO).
  • Seizure problems: It’s difficult to seize assets acquired with proceeds from another person’s crime.

Overall Sectoral ML Vulnerability

The report identifies several sectors with medium-high vulnerability to money laundering:

  • Banking sector
  • Financial agents and financial advisers
  • Legal entities and natural persons authorized for organizational and economic consulting
  • Gambling operators
  • Management companies

Conclusion

The Slovak Republic’s ability to fight against money laundering is average, but its effectiveness is low due to various weaknesses in law enforcement, information systems, and property seizure processes.