Slovakia Takes Significant Steps to Combat Terrorist Financing, Says MONEYVAL Report

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In a major breakthrough in the fight against terrorist financing, Slovakia has made significant progress in strengthening its anti-money laundering and counter-terrorism financing (AML/CFT) regime, according to a follow-up report released by the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL).

Strengthened Regulation and Supervision

The report, which assesses Slovakia’s compliance with international standards against money laundering, terrorist financing, and proliferation of weapons of mass destruction, has upgraded the country’s rating from Partially Compliant to Largely Compliant on Recommendation 26 regarding the regulation and supervision of financial institutions.

Key Measures Implemented

• Since November 2022, Slovak authorities have implemented measures aimed at preventing associates of criminals from holding significant or controlling interests in banks and insurance undertakings.
• Introduced risk assessment procedures for exchange offices and non-banking lenders.
• Improved policies to review individual risk profiles for financial institutions.

Progress Made

According to the report, Slovakia has made progress in addressing most of the technical compliance shortcomings identified in its 2020 Mutual Evaluation Report. Specifically:

Compliance Status

• Out of the 40 Recommendations assessed, Slovakia currently meets:
  • 5 with a rating of Compliant
  • 23 with a rating of Largely Compliant
  • 12 with a rating of Partially Compliant

Future Expectations

The Slovak authorities are expected to report back to MONEYVAL by December 2024 on further progress made towards strengthening its AML/CFT system.