Financial Inclusion and Compliance in Slovakia Under Scrutiny
Introduction
A recent report by the Financial Action Task Force (FATF) has evaluated the level of financial inclusion and compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations in Slovakia. The country’s performance was found to be mixed, with some areas requiring improvement.
Progress Made
Slovakia has made significant progress in implementing technical requirements for AML/CFT regulations. According to the report:
- Financial institution secrecy laws: Slovakia received a “C” rating for its financial institution secrecy laws.
- Powers of supervisors: The country also received a “C” rating for its powers of supervisors.
Areas Requiring Improvement
However, the report identified several key areas where Slovakia needs to improve its compliance with AML/CFT regulations:
Customer Due Diligence
Slovakia received a “PC” rating for customer due diligence requirements, indicating that the country has partially complied with these regulations.
Record Keeping and Internal Controls
The country received an “LC” rating for record keeping, indicating that it has largely complied with this requirement. However, there is still room for improvement in internal controls.
Non-Compliant Areas
The report also identified several areas where Slovakia has not fully complied with AML/CFT regulations:
- Non-profit organisations: The country received a “NC” rating for its treatment of non-profit organizations.
- Transparency and beneficial ownership of legal persons: Slovakia received a “NC” rating for transparency and beneficial ownership of legal persons.
Recommendations
To address these areas, the report made several recommendations to improve Slovakia’s compliance with AML/CFT regulations:
- Improving customer due diligence requirements
- Enhancing record keeping and internal controls
- Strengthening the treatment of non-profit organizations
- Increasing transparency and beneficial ownership of legal persons
By addressing these areas, Slovakia can strengthen its financial system and improve its reputation as a secure and stable jurisdiction for international transactions.