Financial Crime World

Slovak Republic’s Efforts to Combat Terrorist Financing

Progress in Combating Terrorist Financing

The Slovak Republic has made significant progress in its efforts to combat terrorist financing (TF) and cooperate with foreign counterparts, according to a recent report. The Financial Intelligence Unit (FIU) has sent a total of 464 Urgent Intelligence Messages to foreign authorities, highlighting the country’s commitment to sharing information and cooperating on TF cases.

International Cooperation

The FIU also received 246 such messages from abroad, demonstrating the importance of international cooperation in this area. This highlights the significance of global collaboration in preventing and detecting terrorist financing activities.

Strengths and Weaknesses

Strengths:

  • Well-established legal framework for combating TF
  • Effective implementation of anti-money laundering (AML) and counter-terrorist financing (CFT) measures
  • Financial institutions have implemented robust controls to mitigate ML/FT risks
  • FIU has demonstrated a satisfactory level of understanding of general ML/FT risks in its supervised sectors

Weaknesses:

  • Gaps in the appreciation of specific ML/FT risks by some supervisory bodies
  • Lack of resources available for AML/CFT supervision is a concern
  • While progress has been made in establishing a register of legal entities, entrepreneurs, and public authorities, more needs to be done to populate it and ensure that information is accurate

Recommendations

To address the identified weaknesses and improve its efforts to combat terrorist financing, Slovakia should:

  • Prioritize addressing gaps in ML/FT risk appreciation by supervisory bodies
  • Provide sufficient resources for AML/CFT supervision
  • Complete and maintain a comprehensive register of legal entities, entrepreneurs, and public authorities
  • Continue to cooperate with foreign counterparts to effectively prevent and detect TF activities

Key Findings

  • 464 Urgent Intelligence Messages were sent by the FIU to foreign authorities in the assessed period.
  • The FIU received 246 such messages from abroad, highlighting the importance of international cooperation on TF cases.
  • Slovakia has a well-established legal framework for combating TF and has implemented effective AML/CFT measures.
  • Financial institutions have implemented robust controls to mitigate ML/FT risks.
  • The FIU has demonstrated a satisfactory level of understanding of general ML/FT risks in its supervised sectors.

Overall, while Slovakia’s efforts to combat terrorist financing are satisfactory, there is room for improvement. By addressing the identified weaknesses and continuing to cooperate with foreign counterparts, the country can strengthen its defenses against TF activities.