Financial Crime World

Financial Institutions in Slovakia Face Increasing Pressure for Compliance Training

The Slovak financial landscape is undergoing significant changes, putting pressure on institutions to adhere to rigorous regulatory standards. The Financial Administration has been at the forefront of these efforts, implementing various initiatives to enhance compliance and reduce fraud.

Background

The Financial Administration was established in 2012 with the aim of collecting duties and taxes. Since its inception, it has undergone substantial transformations to improve its efficiency and effectiveness.

Notable Achievements

  • The institution’s integrated information system for tax administration (IS), launched in 2015, has improved security, enabled user support, and streamlined tax collection processes.
  • State budget revenue has increased by approximately EUR 3.7 billion over the past few years.
  • The tax gap has narrowed from 41% to 26%, reflecting a notable decline in tax evasion.

Electronisation Efforts Gain Momentum

The Financial Administration has extended electronic services to customs clearance and tax areas, including:

  • Central Electronic Mailbox (CEM): Facilitates e-services in foreign trade transactions.
  • Electronic Customs Clearance System: Has recorded a remarkable 99.7% rate of declarations filed electronically.

Tax Fraud Countering Measures Gain Traction

The Financial Administration has launched several initiatives to combat tax fraud, including:

  • VAT Ledger Statement: Introduced to improve the accuracy and transparency of VAT reporting.
  • Tax Cobra: Collaboration with law enforcement agencies to tackle tax evasion and other financial crimes.
  • Excise Stamp Information System: Implemented to counter excise duty and stamp-related fraud.

Conclusion

As Slovakia continues to navigate the complex world of financial regulations, institutions will need to prioritize compliance training to stay ahead of emerging challenges. The Financial Administration’s commitment to innovation, transparency, and collaboration serves as a model for other institutions seeking to maintain their integrity in an increasingly complex environment.