COUNCIL OF EUROPE PROVIDES GUIDANCE ON FINANCIAL CRIME RISK MANAGEMENT FRAMEWORKS IN SLOVAKIA

Addressing Gaps in Slovak Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) System

The Council of Europe has released a technical guidance paper to help enhance Slovakia’s AML/CFT system. The initiative was prompted by a request from the National Bank of Slovakia, which sought to address gaps identified in recent reports by MONEYVAL and the European Banking Authority.

Developing a Dedicated Methodology for Effective Risk Assessment

Key Features of the Technical Guidance Paper:

• Provides a comprehensive methodology for conducting an effective money laundering and terrorist financing (ML/TF) risk assessment of the banking sector in Slovakia
• Draws on international good practices from other countries, as well as the Council of Europe’s experience with AML/CFT
• Offers practical annexes with suggested risk rating scales and model risk-based supervision processes

Country-Specific Approach to Risk Assessment

The recommendations contained in the paper build on existing experiences assessing ML/TF risks as part of Slovakia’s National Risk Assessment, while also incorporating international good practices and terminology.

Supporting Effective Risk Management

Once completed, the results of this sectoral risk assessment process will be of great assistance to supervisors and banks alike, enabling them to manage their risks and resources more effectively.

This support was provided through a joint Technical Support Instrument (TSI) Project on “Enhancing the Effectiveness of the AML Framework in Slovakia,” funded by the European Union and the Council of Europe.