Financial Crime World

Here is the article converted into Markdown format:

Slovakia Cracks Down on Financial Crime with Swift Reporting of Suspicious Transactions

=====================================================

Slovakia has strengthened its laws requiring financial institutions to report unusual transactions promptly in a bid to prevent financial crime and terrorist financing. The new regulations, outlined in Act No. 297/2008 on the prevention of legalization of proceeds from criminal activity and terrorist financing, come into effect immediately.

Requirements for Financial Institutions

Under the law, financial institutions are duty-bound to report any suspicious transactions, known as “UFTs,” to the Financial Intelligence Unit without undue delay. A UFT is defined as a transaction where there is a reasonable assumption that the customer or beneficial owner is:

  • A person subject to international sanctions imposed by Act No. 289/2016
  • A person related to such individual

Quarterly Reporting of Sanctioned Persons

The law also requires banks and foreign bank branches to provide the Financial Supervision Authority (MF SR) with a quarterly list of clients subject to international sanctions implemented in accordance with Act No. 289/2016 and EU regulations. The list must include:

  • Account numbers
  • Balances for these “sanctioned persons”

Notification Requirements

If a bank identifies one of its clients as a sanctioned person, it is obliged to notify the MF SR within set time limits.

Aim of Increased Transparency

This increased transparency aims to disrupt financial flows that may be linked to criminal activity or terrorism, making it harder for perpetrators to:

  • Launder money
  • Finance illegal activities

International Cooperation

By implementing these measures, Slovakia joins other EU countries in strengthening their anti-money laundering and counter-terrorism financing frameworks, bringing its regulations in line with international standards. The country’s authorities are working closely with the European Union and the United Nations to ensure effective implementation of sanctions and prevent financial crime.

I hope this helps! Let me know if you have any further requests.