Financial Crime World

Slovakia Tightens Financial Compliance Rules: MONEYVAL Applauds Progress towards AML/CFT Recommendations

Bratislava, Slovakia, Makes Commendable Strides in AML/CFT Framework

The European country of Slovakia has made notable advancements in strengthening its financial regulatory framework, particularly with regard to Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) recommendations. The latest report by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) commends Slovakia’s significant progress, specifically in implementing recommendations from the Financial Action Task Force (FATF).

Slovakia’s AML/CFT Improvements: Upgrading Ratings and Regulations

Impact on Slovakia’s AML/CFT Rating

As a result of the implemented improvements, Slovakia’s rating has been upgraded from Partially Compliant to Largely Compliant.

Regulatory Enhancements

Since the introduction of new regulations in November 2022, Slovak authorities have taken decisive actions to prevent individuals with criminal associations from holding significant or controlling interests or management functions in banks and insurance undertakings. Risk assessment procedures have also been formalized for exchange offices and non-banking lenders. Additionally, the government has significantly improved its policies and procedures for evaluating financial institutions’ individual risk profiles. This progress has addressed substantial portions of the technical compliance shortcomings mentioned in the 2020 Mutual Evaluation Report.

Key Improvements and Current Ratings

Currently, Slovakia has made the following strides regarding the 40 identified FATF Recommendations:

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

MONEYVAL’s Expectations and Future Advancements

Having addressed significant progress in Slovakia’s AML/CFT framework, MONEYVAL anticipates further advancements from the Slovakian government by December 2024. As a monitoring body of the Council of Europe, MONEYVAL assesses the regulatory frameworks of 33 states and territories (including Slovakia), providing recommendations for improvement in addressing money laundering, terrorist financing, and counter-proliferation financing.

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