Slovakia Takes Significant Steps to Strengthen Banking Regulations

MONEYVAL Reports Substantial Progress in Anti-Money Laundering and Terrorist Financing Regime

The Slovak Republic has made significant strides in improving its anti-money laundering and terrorist financing (AML/CFT) regime, according to a recent report by MONEYVAL. The country has strengthened its regulations for financial institutions, leading to an upgrade from Partially Compliant to Largely Compliant on Recommendation 26.

Key Developments

• Since November 2022, Slovak authorities have introduced measures to prevent associates of criminals from holding significant or controlling interests in banks and insurance undertakings.
• Risk assessment procedures have been adopted for exchange offices and non-banking lenders.
• Individual risk profiles have been improved for financial institutions.

Progress Made

The report highlights that the Slovak Republic has addressed most technical compliance shortcomings identified in its 2020 Mutual Evaluation Report. Currently, the country is rated: * Compliant on five Recommendations * Largely Compliant on 23 Recommendations * Partially Compliant on 12 Recommendations

MONEYVAL’s Role

MONEYVAL, a monitoring body of the Council of Europe, evaluates 33 states and territories to assess compliance with international standards against money laundering, terrorism financing, and proliferation financing. The organization provides recommendations to national authorities for necessary improvements to their AML/CFT systems.

Future Developments

The Slovak Republic is expected to report back to MONEYVAL by December 2024 on further progress made towards strengthening its AML/CFT system. With these developments, the country demonstrates its commitment to maintaining a robust financial system and preventing illicit activities.