Financial Crime World

Council of Europe Report on Slovakia’s Anti-Money Laundering Measures

Introduction

This report from the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) evaluates Slovakia’s progress in preventing money laundering and financing terrorism. The report provides key findings and recommendations for improvement.

Findings

Inadequate Risk-Based Inspections

  • FIU and NBS inspections are not fully risk-based due to a lack of documented processes.
  • This hampers the effectiveness of financial intelligence gathering and analysis.

Incomplete UBO Register

  • The UBO register is still being populated (only 12% of legal persons have inserted their UBO data).
  • The register lacks mechanisms for verifying information at the time of registration, compromising its accuracy.

Challenges with Confiscation Process

  • Authorities have generally been active in providing mutual legal assistance.
  • However, there are issues with the confiscation process, which need to be addressed urgently.

Recommendations

Enhance Financial Intelligence

  • Take procedural and institutional measures to enhance and widen the use of financial intelligence by LEAs involved in detecting and investigating ML and proceeds-generating crimes.

Training for Law Enforcement Agencies (LEA)

  • Train all LEA actors in collecting and using financial intelligence.
  • Mechanisms should be adopted to incentivize police officers to engage in financial analysis in ML investigations.

Improve Registers

  • Ensure that all registers have adequate resources and legal powers to hold accurate and up-to-date beneficial ownership information.
  • Effective sanctions should be applied against non-compliant entities.

Risk-Based Supervision

  • Allocate more resources and expertise to undertake full risk-based supervision of FIs and DNFBPs.
  • The NBS should consider having AML/CTF-dedicated supervisory staff.

Confiscation Process Review

  • Urgently review the legal and procedural framework for forfeiture/confiscation to ensure that criminal proceeds are effectively confiscated in all cases.

Conclusion

The report provides a comprehensive evaluation of Slovakia’s progress in preventing money laundering and financing terrorism. The findings highlight areas for improvement, and the recommendations aim to address these issues effectively.