Financial Crime World

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Slovakia Tackles Financial Crime Risk Management in ESI Funds

Strengthening Financial Crime Risk Management in European Structural and Investment (ESI) Funds

In a bid to strengthen financial crime risk management in European Structural and Investment (ESI) Funds, the Slovak Republic has developed a comprehensive strategy with key actions for tackling fraud and corruption risks. The OECD report “Tackling Fraud and Corruption Risks in the Slovak Republic: A Strategy with Key Actions for the European Structural and Investment Funds” outlines two key areas for improvement.

Enhancing Fraud and Corruption Risk Assessments

According to the report, the country’s managing authorities need to:

  • Clarify and improve the criteria for scoring fraud and corruption risks
  • Ensure control activities are appropriate, sufficient, and proportional for mitigating identified risks
  • Conduct periodic statistical analysis of irregularities, fraud cases, and audit findings

Systematic Approach to Managing Fraud and Corruption Risks

The strategy also emphasizes the importance of developing formalized, regular, and ongoing training programs on fraud risk management and assessments for personnel in managing authorities. Additionally, information-sharing forums between authorities responsible for managing ESI funds and key national authorities will be organized to enhance collaboration and coordination.

Common Schemes and Preventive Actions

A separate guide “Fraud and corruption in European Structural and Investment Funds: A spotlight on common schemes and preventive actions” highlights specific risks related to each stage of the project cycle, including:

  • Application and project selection
  • Implementation
  • Project closure and evaluation

The guide provides concrete actions to take at each stage, such as:

  • Ensuring that an audit trail is maintained
  • Establishing an e-procurement system for the dissemination of public procurement information
  • Cross-checking information across available databases

Results Communication

The strategy was published in October 2019 and is available for download on the OECD i-Library. A launch event was held by the OECD, with Deputy Prime Minister Richard Raši and Deputy Secretary General Jeffrey Schlagenhauf launching the publication.

OECD Experts Laud Slovakia’s Efforts

The OECD’s Director-General for Public Governance, Mr. Achim Steiner, praised Slovakia’s efforts to strengthen financial crime risk management in ESI funds. “This report is a testament to the Slovak government’s commitment to tackling corruption and ensuring that EU funding is used efficiently and effectively,” he said.

Conclusion

Slovakia’s comprehensive strategy to tackle financial crime risk management in ESI funds demonstrates its commitment to promoting good governance and transparency in public procurement.