Financial Crime World

Slovakia Tightens Bolts on Financial Crime Risk Management

As a European Union member country, Slovakia has been actively working to combat money laundering and terrorism financing. In this article, we will explore the efforts of Slovakia in implementing anti-money laundering (AML) procedures to protect its financial industry and contribute to global efforts against illicit economic activity.

The Threat of Money Laundering

Money laundering activities are a significant concern in Slovakia, with crimes such as auto theft, contraband, tax fraud, arms, and illegal drug smuggling contributing to the country’s economic woes. According to the International Narcotics Control Strategy Report (INCSR) submitted by the US Department of State in 2016, Slovakia has been recognized as a Concerned Jurisdiction.

Key Statistics:

  • Auto theft
  • Contraband
  • Tax fraud
  • Arms and drug smuggling

FATF Status Update

The Financial Action Task Force (FATF), an intergovernmental organization that sets international standards for combating money laundering and terrorist financing, evaluated Slovakia’s progress in implementing AML/CTF standards. The most recent follow-up Mutual Evaluation Report found Slovakia to be Compliant for five and Nearly Compliant for 22 of the FATF’s 40 recommendations.

FATF Compliance Status:

  • Compliant: 5
  • Nearly Compliant: 22

Regulatory Institutions

To reduce the effects of money laundering, Slovakia has established regulatory institutions, including the Financial Intelligence Unit (FIU), which oversees compliance with the Slovak AML Act. Other regulators, such as the National Bank of Slovakia and tax and customs offices, also play a crucial role in supervising obliged entities.

Regulatory Institutions:

  • Financial Intelligence Unit (FIU)
  • National Bank of Slovakia
  • Tax and Customs Offices

Obliged Institutions

Under the Slovak AML Act, various institutions are required to comply with money laundering regulations, including banks, stock exchange businesses, securities warehouse management companies, tax and economic consultants, insurance services providers, accountants, post offices, auditors, lawyers, and notary officers.

Obliged Entities:

  • Banks
  • Stock Exchange Businesses
  • Securities Warehouse Management Companies
  • Tax and Economic Consultants
  • Insurance Services Providers
  • Accountants
  • Post Offices
  • Auditors
  • Lawyers
  • Notary Officers

AML Solutions for Slovakia

Sanction Scanner offers advanced anti-money laundering solutions that empower businesses to meet AML requirements. Companies operating in Slovakia committed to AML compliance can leverage Sanction Scanner’s comprehensive suite of solutions to ensure their success through robust AML measures.

Benefits of Sanction Scanner:

  • Comprehensive Suite of Solutions
  • Robust AML Measures
  • Empower Businesses to Meet AML Requirements

Conclusion

In a bid to strengthen its financial crime risk management framework, Slovakia must continue to work on addressing areas where further changes are required for full compliance and increased effectiveness. By leveraging advanced anti-money laundering solutions like Sanction Scanner’s comprehensive suite of tools, businesses can ensure their success through robust AML measures.