Slovakia Steps Up Efforts to Detect Money Laundering

Slovakia has recently strengthened its regulations to detect and report unusual transactions, aiming to crack down on financial crimes.

New Obligations for Financial Institutions

Under Act No. 297/2008, financial institutions in Slovakia are now required to notify the Financial Intelligence Unit (Finančná spravodajská jednotka) without undue delay of any suspicious transactions.

What Constitutes an Unusual Transaction?

The law defines an unusual transaction as one that raises a reasonable assumption that the customer or beneficial owner is linked to:

• International sanctions imposed under Act No. 289/2016
• Terrorist financing
• Transactions related to goods, services, or assets subject to such sanctions

Enhanced Due Diligence for Sanctioned Individuals

Banks and foreign bank branches are also required to provide the Ministry of Finance of the Slovak Republic (MF SR) with a list of clients who are subject to international sanctions every quarter. The list must include:

• Account numbers
• Balances for these “sanctioned persons”

If banks identify their clients as sanctioned individuals, they must notify the MF SR in a timely manner.

Rationale Behind the Move

The move is aimed at preventing the legalization of proceeds from criminal activity and terrorist financing, in line with EU and UN sanctions. It is expected to enhance the country’s anti-money laundering efforts and improve its overall financial integrity.