Slovakia Takes Significant Steps to Enhance Financial Institution Security, Says MONEYVAL Report
In a major boost to its financial institution security, the Slovak Republic has taken significant steps towards improving its anti-money laundering and terrorist financing regime, according to a follow-up report released by MONEYVAL.
Substantial Progress Made
The report concludes that Slovakia has made substantial progress in addressing technical compliance shortcomings identified in its 2020 Mutual Evaluation Report. Since November 2022, the country’s authorities have introduced several measures aimed at strengthening financial institution security.
- Preventing associates of criminals from holding significant or controlling interests in banks and insurance undertakings
- Adopting risk assessment procedures for exchange offices and non-banking lenders
- Improving policies to review individual risk profiles for financial institutions
Compliance Rating Improved
As a result, MONEYVAL has re-rated Slovakia’s compliance with the Financial Action Task Force’s Recommendation 26 on the regulation and supervision of financial institutions from Partially Compliant to Largely Compliant. The country now has:
- Five recommendations rated as Compliant
- 23 recommendations rated as Largely Compliant
- 12 recommendations rated as Partially Compliant out of a total of 40
Next Steps
The Slovak authorities are expected to report back to MONEYVAL by December 2024 on further progress made towards strengthening the anti-money laundering and counter terrorist financing system.
About MONEYVAL
MONEYVAL, a monitoring body of the Council of Europe, evaluates 33 states and territories to assess their compliance with international standards on:
- Anti-money laundering
- Combating the financing of terrorism
- Combating the proliferation of weapons of mass destruction
The organization makes recommendations to national authorities on necessary improvements to their systems and provides technical assistance to support implementation.
Conclusion
The Slovak Republic’s progress in strengthening its financial institution security is a significant achievement and demonstrates its commitment to combating money laundering and terrorist financing.