Financial Crime World

Slovakia Steps Up Efforts to Combat Financial Crime and Ensure Compliance with EU Anti-Money Laundering Standards

As a member of the European Union, Slovakia has been working diligently to combat money laundering and terrorism financing, protecting its financial industry and contributing to global efforts to combat illicit economic activity. To achieve this goal, substantial anti-money laundering (AML) procedures must be implemented.

Money Laundering Activities in Slovakia

Money laundering activities are a significant concern in Slovakia, with criminal organizations engaging in:

  • Auto theft
  • Contraband smuggling
  • Tax fraud
  • Arms trafficking
  • Illegal drug smuggling

The country serves as both a transit and destination point for laundering money obtained from these illicit activities.

Progress Made in Implementing AML Regulations and Laws

Despite being recognized as a Concerned Jurisdiction by the US Department of State’s International Narcotics Control Strategy Report (INCSR) in 2016, Slovakia has made significant progress in implementing AML regulations and laws to reduce money laundering activities. The country’s robust banking sector and open economy, with exports accounting for approximately 92.36% of GDP, make it an attractive location for businesses.

FATF Evaluation

The Financial Action Task Force (FATF) has been monitoring Slovakia’s efforts to combat money laundering and terrorist financing. According to the most recent Mutual Evaluation Report, completed in 2022, Slovakia was found to be:

  • Compliant with five of the FATF’s 40 recommendations
  • Nearly Compliant with 22 of the FATF’s 40 recommendations
  • Highly Effective for zero of the Effectiveness and Technical Compliance evaluations
  • Substantially Effective for one of the Effectiveness and Technical Compliance evaluations

Areas for Improvement

While Slovakia has made significant strides in implementing AML/CTF standards, there may be areas where further changes are required to achieve full compliance and increased effectiveness. To maintain its solid AML/CTF framework and fulfill international expectations, Slovakia must continue to work on these issues.

Regulatory Institutions and Obliged Entities

Regulatory institutions play a crucial role in reducing the effects of money laundering in Slovakia. The Financial Intelligence Unit oversees compliance with the Slovak AML Act, while other rules have supervisory authority within the scope of special regulations.

Examples of obliged entities include:

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

These organizations must comply with money laundering regulations and report any unusual business transactions or non-compliance with Slovak AML Law to the relevant authorities.

Supporting Slovakia’s Efforts in Combating Financial Crime

To support Slovakia’s efforts in combating financial crime, Sanction Scanner offers advanced anti-money laundering solutions that empower businesses to meet AML requirements. Companies operating in Slovakia can leverage Sanction Scanner’s comprehensive suite of solutions to ensure their success through robust AML measures.