Financial Crime World

Here is the rewritten article in markdown format:

Slovakia Steps Up Fight Against Money Laundering and Terrorism Financing

As a member of the European Union, Slovakia has been working hard to combat money laundering and terrorism financing in its financial industry. The country’s efforts are aimed at protecting its economy and contributing to global efforts to combat illicit economic activity.

The Struggle with Money Laundering

Money laundering activities have been a significant concern in Slovakia, with criminal activities negatively affecting the country’s economy. According to the International Narcotics Control Strategy Report (INCSR) submitted by the US Department of State in 2016, Slovakia was recognized as a Concerned Jurisdiction. These crimes often involve:

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

Slovakia: A Transit and Destination Country for Laundered Funds

Slovakia is also a transit and destination country for laundering money obtained from these crimes. The country’s lack of free trade zones and high seas has made it an attractive location for illicit activities. With a population of 5.4 million, Slovakia’s economy is heavily reliant on exports, with about 92.36% of GDP coming from abroad.

FATF Status: A Compliant Country with Room for Improvement

The Financial Action Task Force (FATF) recently completed its follow-up Mutual Evaluation Report on implementing anti-money laundering and counter-terrorist financing standards in Slovakia. The report found that the country was:

  • Compliant for five of the FATF’s 40 recommendations
  • Nearly Compliant for 22 of the FATF’s 40 recommendations

While Slovakia has made significant progress, there are areas where further changes are required to achieve full compliance.

Regulators in Slovakia

To combat money laundering, Slovakia has established regulatory institutions such as:

  • The Financial Intelligence Unit
  • The National Bank of Slovakia
  • The Financial Directorate of the Slovak Republic
  • Tax and customs offices

Obligated Institutions Under Slovakian Law

Under the Slovak AML Act, certain institutions are required to comply with money laundering regulations. These include:

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

AML Solutions for Slovakia

Sanction Scanner offers advanced anti-money laundering solutions that empower businesses to meet AML requirements. Companies operating in Slovakia can leverage Sanction Scanner’s comprehensive suite of solutions to address their AML needs. For more information or to request a demo, visit our website.