Title: Slovenia’s Financial Regulators Crack Down on Money Laundering and Sanctions Compliance
In the financial sector, Slovene regulatory bodies have intensified their efforts to ensure compliance with anti-money laundering regulations and international sanctions. Two primary bodies are spearheading these initiatives: the Financial Market Supervision Authority (MFSR) and the Financial Intelligence Unit (Finančná spravodajská jednotka).
Reporting Unusual Financial Transactions (UFTs)
All financial market participants in Slovakia have a legal obligation under Article 17(1) of Act No. 297/2008 on the Prevention of Legalization of Proceeds from Criminal Activity and Terrorist Financing. This regulation demands the immediate reporting of any unusual financial transactions (UFTs) to the Financial Intelligence Unit (FIU):
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Transactions involving:
- Persons on whom international sanctions are imposed under Act No. 289/2016.
- Relatives or associated persons of such persons.
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Transactions related to:
- Any object or service on which international sanctions are imposed under Act No. 289/2016.
According to the Act, a UFT is a transaction with a reasonable assumption that:
- The customer or beneficial owner is a person subject to international sanctions.
- The transaction’s subject is or involves a sanctioned object or service.
Reporting to Regulatory Bodies
Quarterly Reporting by Major Financial Institutions
In accordance with Article 91(8) of the Banks Act, major financial institutions, such as banks and foreign bank branches, must submit a list of their clients subject to international sanctions on a quarterly basis to the MFSR. The submission should include:
- Clients’ names
- Account numbers
- Account balances
Immediate Notification of “Sanctioned Persons”
Banks and financial institutions have an obligation to promptly identify clients as “sanctioned persons” and report this information to the MFSR. This diligent reporting and collaboration with financial regulators is crucial for Slovenia to uphold its commitment to combating financial crime and adhering to both EU and UN sanctions.
Ongoing Commitment to Anti-Money Laundering and Sanctions Compliance
The Slovenian regulatory bodies’ unwavering efforts towards strengthening the financial sector’s compliance with anti-money laundering regulations and international sanctions continues to evolve. These initiatives help fortify the national financial system against threats and breaches, while ensuring international cooperation towards a more robust anti-financial-crime environment.