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Money Laundering Persists in Slovakia: An Overview and Regulatory Response

Slovakia, despite being a member of the European Union, remains a prime target for money laundering and terrorist financing, necessitating stringent anti-money laundering (AML) measures. The financial industry’s protection and global efforts to combat illicit economic activities hinge on these regulations.

Money Laundering in Slovakia

Money laundering is a growing concern in Slovakia, with crimes such as auto theft, contraband, tax fraud, arms, and illegal drug smuggling dominating the scene. According to the International Narcotics Control Strategy Report (INCSR) 2016 by the US Department of State, Slovakia functions as both a transit and destination point for laundering proceeds from these activities.

Regulatory Response

The Financial Action Task Force (FATF), an international organization that sets standards and promotes implementation of AML/Counter-Terrorist Financing (CTF) measures, assessed Slovakia’s progress in the 2022 follow-up Mutual Evaluation Report. While Slovakia was observed to generally conform with international AML/CTF standards, there were areas where improvements were necessary for full compliance and enhanced effectiveness.

FATF Assessment

  • Slovakia was deemed Compliant for five FATF recommendations
  • Nearly Compliant for 22 recommendations
  • Highly Effective rating for none
  • Substantially Effective rating for one

Regulatory Framework

The Slovak Republic’s regulators take a proactive stance against money laundering, with the Financial Intelligence Unit (FIU) serving as the primary authority overseeing compliance with the Slovak AML Act. National Bank of Slovakia, Financial Directorate of the Slovak Republic, tax and customs offices, and other relevant agencies exercise supervisory authority over obligated entities.

Obligated Entities

  • Banks
  • Stock exchange businesses
  • Securities warehouses
  • Management companies
  • Tax and economic consultants
  • Some insurance companies
  • Accountants
  • Post offices
  • Auditors
  • Lawyers
  • Notary officers

Addressing Money Laundering Concerns

Addressing money laundering concerns in Slovakia necessitates robust AML/CTF measures and ongoing improvements. Sanction Scanner offers comprehensive anti-money laundering solutions for businesses operating in Slovakia, aiming to facilitate AML compliance and ensure long-term success through effective measures.

If you’re interested in learning more about our AML solutions or would like to request a demo, please visit our website.