Financial Crime World

Slovakia’s Commitment to Combating Money Laundering and Financial Crimes: An Update on the Country’s Progress

As a member of the European Union, Slovakia is committed to upholding strict anti-money laundering (AML) regulations to safeguard its financial industry and contribute to the global fight against illicit economic activity. With a population of approximately 5.4 million people and an economy heavily reliant on exports, Slovakia presents an essential link in the global financial system.

Money Laundering in Slovakia

Slovakia has been recognized as a “Concerned Jurisdiction” due to its involvement in various criminal activities contributing to money laundering. Common crimes associated with money laundering in Slovakia include:

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

Slovakia’s strategic location and open economy make it a desirable transit and destination country for laundering ill-gotten gains.

FATF Evaluation

The Financial Action Task Force (FATF) closely monitors Slovakia’s progress in implementing AML and counter-terrorist financing (CTF) standards. In their most recent evaluation report completed in 2022, Slovakia was found to be ‘Compliant’ for five recommendations and ‘Nearly Compliant’ for 22 others. The country also received ‘Highly Effective’ and ‘Substantially Effective’ ratings for 0 and 1 of the Effectiveness and Technical Compliance evaluations, respectively. While Slovakia generally conforms with international AML/CTF standards, improvements are necessary to ensure full compliance and increase effectiveness.

Slovakia’s Regulatory Institutions

The Financial Intelligence Unit (FIU) is responsible for overseeing compliance with the Slovak AML Act and collaborating with other supervisory authorities. Obliged entities, including banks, stock exchange businesses, securities warehouses, and management companies, are subject to the FIU’s supervision. Reports of investigations related to the entity being audited must be reported to the FIU before audit activities begin.

Obliged Entities and Sectors

To ensure AML compliance, various sectors and institutions in Slovakia are designated as ‘obliged entities’ under the Slovak AML Act. These entities are required to report any suspicious transactions to the supervisory authority. Some of the key sectors and obliged institutions include:

  • Banks
  • Stock exchange businesses
  • Securities warehouses
  • Management companies
  • Tax and economic consultants
  • Insurance companies
  • Accountants
  • Post offices
  • Auditors
  • Lawyers and notary officers

Ensuring Compliance with AML Regulations

Slovakian companies can rely on the advanced solutions offered by Sanction Scanner to effectively meet their regulatory requirements and strengthen their position against financial crime. Our comprehensive suite of anti-money laundering solutions helps businesses build a safer, more trustworthy financial future for Slovakia and beyond. To learn more about Sanction Scanner’s offerings, please reach out to us or request a demo through our website.