Financial Crime World

Slovakia’s Financial Regulators Bolster Anti-Money Laundering Measures Amidst EU Membership

Slovakia, an EU member since 2004, is dedicated to combating money laundering and terrorism financing within its financial sector. With a robust banking industry and a population of 5.4 million people, Slovakia processed nearly all of its GDP through exports in 2021. It is a transit and destination country for illicit economic activities, making it a Concerned Jurisdiction in the 2016 International Narcotics Control Strategy Report.

Money Laundering in Slovakia

Money laundering, a pervasive issue worldwide, has made its way into Slovakia’s economy. Criminal activities in Slovakia often include:

  • Auto theft
  • Contraband
  • Tax fraud
  • Arms
  • Illegal drug smuggling

To address these issues, Slovakia has implemented a series of anti-money laundering (AML) regulations and laws to reduce money laundering activities.

Slovakia’s Evaluation by the Financial Action Task Force (FATF)

In a recent follow-up Mutual Evaluation Report completed in 2022, the FATF evaluated Slovakia’s efforts:

  • Slovakia was found to be Compliant for five and Nearly Compliant for 22 of the FATF’s 40 recommendations
  • Slovakia received a rating of Highly Effective for 0 and Substantially Effective for 1 of the Effectiveness and Technical Compliance evaluations

There is still work to be done to strengthen Slovakia’s framework and maintain a solid AML/CTF regime.

Regulatory Bodies Overseeing Compliance

Regulatory bodies like the Financial Intelligence Unit (FIU) in Slovakia oversee compliance with the Slovak AML Act. Along with the FIU, regulatory authorities such as:

  • National Bank of Slovakia
  • Financial Directorate of the Slovak Republic
  • Tax and customs offices have supervisory authority over “obliged entities” defined under the Slovak AML Act

Before initiating audit activities, any investigation related to the regulated entity being audited is shared with the FIU.

Audits on Obliged Institutions

The FIU, along with the relevant supervisory authorities, can also perform audits on obliged institutions, including:

  • Banks
  • Stock exchange businesses
  • Securities warehouses
  • Management companies
  • Tax and economic consultants
  • Some insurance companies
  • Accountants
  • Post offices
  • Auditors
  • Lawyers

The reporting of any unusual transactions or non-compliance with Slovak AML law is mandatory.

Assisting Slovakian Businesses with AML Solutions

To help Slovakian businesses effectively meet their AML requirements, companies like Sanction Scanner provide advanced AML solutions. Offering a comprehensive suite of AML solutions, Sanction Scanner empowers Slovakian enterprises to address their AML needs and contribute to the global effort against financial crime.

To learn more about how Sanction Scanner can assist Slovakian companies, visit their website and request a demo.