Financial Crime World

Slovakia Leads the Way in Beneficial Ownership Transparency

A New Standard for Transparency in Europe

Slovakia has implemented two unique beneficial ownership registers that have set a new standard for transparency in Europe. The country’s commitment to increasing beneficial ownership transparency dates back to the 2010s, and its efforts have been recognized internationally.

The Standard Register of Beneficial Owners

Under EU Anti-Money Laundering Directives, a standard register of beneficial owners was established for all companies in Slovakia. This register is part of the Register of Legal Entities, and companies are required to provide data on their beneficial owners.

  • Companies must provide accurate and up-to-date information about their beneficial owners.
  • The register is publicly accessible, allowing stakeholders to verify ownership structures.
  • The standard register imposes obligations and sanctions on companies that fail to comply.

The Register of Public Sector Partners

Following a series of high-profile cases involving shell companies winning major public procurements, a separate register was created specifically for companies that enter financial relations with the state. The Register of Public Sector Partners is a globally unique mechanism that requires external verifiers to collect and verify data on beneficial owners.

  • Companies entering into financial relationships with the state must provide detailed information about their beneficial owners.
  • External verifiers are responsible for collecting and verifying this data.
  • Stricter obligations and sanctions apply to companies registered in this database, making it a more robust tool in the fight against financial crime.

International Recognition and Future Challenges

Slovakia’s commitment to beneficial ownership transparency has earned international recognition, with the country playing a leading role in various initiatives such as the Summit for Democracy and the Open Government Partnership. However, despite its progress, Slovakia still maintains two separate registers, each collecting similar data but with different costs and obligations for private sector companies.

  • The current regime raises questions about efficiency and potential need for further reform.
  • Experts and international organizations have praised Slovakia’s efforts but also highlight areas of improvement.
  • AmCham Slovakia and CIPE are hosting a business breakfast event to discuss these issues and explore ways to improve beneficial ownership transparency in Slovakia.

Expert Insights at the Business Breakfast Event

Speakers at the event include Daniel Zigo, Jaroslav Lexa, Andrej Leontiev, Michal Brucháč, Luciána Malovcová, and Ronald Blaško. They will discuss the implications of beneficial ownership transparency for businesses and the government.

  • The event provides a platform for stakeholders to share their views on the current regime.
  • Expert insights will help identify areas of overlap between state and business interests.
  • Attendees can engage in discussions about potential reforms and improvements.