Financial Crime World

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Slovakia’s Financial Institution Security Receives Thumbs Up from MONEYVAL

In a recent report, the Council of Europe’s anti-money laundering body, MONEYVAL, has commended Slovakia for its significant strides in combating money laundering and terrorist financing.

Notable Improvements

The country has made notable improvements in several areas, including:

  • Risk Assessment: Slovakia has enhanced its risk assessment framework to better identify and mitigate money laundering and terrorist financing risks.
  • Suspicious Transaction Reporting: The country has strengthened its suspicious transaction reporting system, allowing for more effective detection and investigation of illicit activities.
  • Designation of Competent Authorities: Slovakia has designated competent authorities responsible for investigating money laundering cases and supervising financial institutions.

Ratings Upgrade

MONEYVAL’s report has upgraded Slovakia’s ratings from “partially compliant” to “largely compliant” in four key areas, including:

  • ML/TF Risk Assessment
  • Suspicious Transaction Reporting
  • Designation of Competent Authority for ML
  • Maintaining Comprehensive Statistics

Challenges Remain

However, the country still faces some challenges, including:

  • Inadequate Prioritization: Slovakia needs to prioritize measures to mitigate money laundering and terrorist financing risks.
  • Lack of Obligations for Private Sector: The private sector lacks obligations to manage and mitigate higher ML/TF risks.

Shortcomings in Virtual Assets

Slovakia has also struggled to implement international requirements for virtual assets, including prominent virtual currencies and their providers. As a result, the country’s rating has been downgraded from “largely compliant” to “partially compliant”.

Next Steps

Slovakia is expected to submit a follow-up report to MONEYVAL in one year’s time, outlining its progress in strengthening its anti-money laundering and counter terrorist financing measures.

Access the Full Report

The full report can be accessed on the MONEYVAL website.