Slovakia Tightens Banking Regulations to Combat Financial Crime

Strengthening Measures Against Money Laundering

In an effort to strengthen its stance against financial crime and money laundering, Slovakia has implemented new banking regulations. These measures aim to enhance the country’s ability to combat financial crime while ensuring compliance with EU and UN sanctions.

Key Provisions of the New Regulations

• Reporting Unusual Transactions: Financial institutions are required to report unusual transactions to the Financial Intelligence Unit without delay.
• Defining “Unusual Financial Transactions”: The regulations define “unusual financial transactions” as any transaction where there is a reasonable assumption that the customer or beneficial owner is a person subject to international sanctions.

Obligations of Banks and Foreign Bank Branches

• Providing Quarterly Lists: Banks and foreign bank branches are required to provide the Monetary Fund of the Slovak Republic (MF SR) with a quarterly list of clients who are subject to international sanctions implemented in accordance with Act No. 289/2016 Coll. and applicable EU regulations.
  • The list must include account numbers and balances for these clients.
• Notifying Sanctioned Persons: Banks are obligated to notify the MF SR if they identify any clients as sanctioned persons, within time limits set by the regulator.

Purpose of the New Regulations

The new regulations aim to enhance Slovakia’s ability to combat financial crime and money laundering, while ensuring compliance with EU and UN sanctions. By implementing these measures, the country can better protect its financial system from illicit activities and maintain a strong reputation in the international community.