Financial Crime World

Slovakia’s Anti-Money Laundering Laws: Identifying and Verifying Customers and Beneficial Owners

The Slovak National Council has passed the Act on Protection against Money Laundering and Terrorist Financing, aimed at preventing and detecting illicit financial activities. In this article, we provide an overview of this legislative act and its key provisions.

Act No. 297/2008 Coll.

  • Title: On Protection against Money Laundering and Terrorist Financing and Amendments to Certain Acts

Part I

Section One: General Provisions

Article 1: Subject Matter

This Act regulates the rights and duties of legal entities and natural persons in preventing and identifying money laundering (ML) and terrorist financing (TF).

Article 2: Definitions

  • Money laundering: The conversion, transfer, or acceptance of property derived from criminal activity with the intent to conceal or disguise its origin.
  • Terrorist financing: The provision of funds or property with the knowledge they will be used for terrorist activities.

Article 4: Unusual Business Operation

  • An unusual business operation can suggest ML or TF.
  • These include transactions with unusually high volumes, no economic or visible lawful purpose, or involving non-verifiable or difficult-to-verify information.

Section Two: Customer Due Diligence Applied by the Obliged Person

Article 10: Due Diligence

  • Customer due diligence: Identifying and verifying customers and beneficial owners.
  • Obliged persons: Must identify and verify:
    1. The customer and their identification.
    2. The beneficial owner and their identification, including understanding the ownership and control structure.
    3. The purpose and intended nature of the transaction or business relationship.
    4. Whether the customer or beneficial owner is a politically exposed person (PEP) or sanctioned person.
    5. The origin of funds or property used in the transaction (depending on the risk assessment).
    6. Whether the customer is acting in their own name.
    7. Monitor transactions for suspicious activity.

The Slovak anti-money laundering laws require obliged persons to apply customer due diligence to ensure the prevention and detection of ML and TF activities. These laws also emphasize the importance of maintaining an unsuspicious business environment by adhering to the legislative framework and actively monitoring transactions.