Slovakia Tightens Anti-Money Laundering Laws to Combat Financial Crime
Slovakia has strengthened its anti-money laundering laws to crack down on financial crime and terrorist financing. The country is taking a proactive approach to ensure that its financial system remains free from illegal activities, aligning with international standards and best practices.
New Requirements for Financial Institutions
Financial institutions in Slovakia are now required to report suspicious transactions to the Financial Intelligence Unit (Finančná spravodajská jednotka) without delay. This is according to Article 17(1) of Act No. 297/2008 on the prevention of legalization of proceeds from criminal activity and terrorist financing.
Definition of Unusual Financial Transactions
The act defines Unusual Financial Transactions (UFTs) as transactions that have a reasonable assumption that the customer or beneficial owner is a person subject to international sanctions under Act No. 289/2016 or is related to such an individual. Financial institutions are obligated to report these UFTs in a timely manner.
Additional Requirements for Banks and Foreign Bank Branches
Banks and foreign bank branches in Slovakia are required to provide the Slovak Financial Supervisory Authority (MF SR) with quarterly lists of clients subject to international sanctions implemented under Act No. 289/2016 and EU regulations. The list must include:
- Account numbers
- Balances for these sanctioned individuals
Notification Requirements
Banks are also mandated to notify the MF SR of any findings identifying their clients as sanctioned persons within the time limits set by the authority.
Heightened Scrutiny
This heightened scrutiny is aimed at ensuring that Slovakia’s financial system remains free from illegal activities. The country is committed to aligning with international standards and best practices in anti-money laundering and combating the financing of terrorism.