Financial Crime World

Slovakia Strengthens Anti-Money Laundering Efforts with Enhanced Financial Regulations

Introduction

The Slovak Republic has introduced several measures aimed at enhancing its anti-money laundering and terrorist financing (AML/CFT) regime, in a bid to strengthen compliance with international standards.

Positive Results from Regulatory Efforts

According to a report released by MONEYVAL, the country’s regulatory efforts have yielded positive results, with Slovakia upgrading from Partially Compliant to Largely Compliant on the Financial Action Task Force’s Recommendation 26.

Key Measures Implemented since November 2022

  • Prevention of Individuals Associated with Crime: The Slovak authorities have taken measures to prevent individuals associated with criminals from holding or controlling interests in banks and insurance undertakings.
  • Risk Assessment Procedures for Exchange Offices and Non-Banking Lenders: The country has implemented risk assessment procedures for exchange offices and non-banking lenders, as well as improved policies for reviewing individual risk profiles of financial institutions.

Progress Made towards Strengthening AML/CFT System

As a result of these efforts, Slovakia has made progress in addressing most of the technical compliance shortcomings identified in its 2020 Mutual Evaluation Report. Of the 40 Recommendations evaluated by MONEYVAL, the country currently rates:

  • Compliant on 5 Recommendations
  • Largely Compliant on 23 Recommendations
  • Partially Compliant on 12 Recommendations

Future Plans

The Slovak authorities are expected to submit a follow-up report to MONEYVAL by December 2024, detailing further progress made towards strengthening its AML/CFT system.

MONEYVAL’s Role in Evaluating Compliance with International Standards

MONEYVAL, the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism, is responsible for assessing compliance with international standards to counter money laundering, terrorist financing, and proliferation of weapons of mass destruction. The organization evaluates 33 states and territories, providing recommendations to national authorities to improve their AML/CFT systems.

Conclusion

The Slovak Republic’s efforts to enhance its financial regulations demonstrate a commitment to combating money laundering and terrorist financing, and are expected to contribute positively to the country’s economic stability and security.