Financial Crime World

Slovenia’s Ongoing Battle Against Financial Crime: AML Regulations and Regulatory Bodies

Slovenia, as a member of the EU, is dedicated to strengthening its Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations and mechanisms up to international standards. In the 2023 assessment by the European Financial Action Task Force (FATF), Slovenia was deemed Compliant for 11 and Largely Compliant for 28 FATF 40 Recommendations, highlighting potential improvement areas.

Latest Evaluation Report

In the latest Mutual Evaluation Report, Slovenia scored Highly Effective for none and Substantially Effective for one effectiveness area out of the 11 areas of its AML/CFT Regime. The report emphasized the need for more action to make these measures effective against money laundering and terrorist financing.

Regulatory Bodies

The Ministry of Finance’s Office for Money Laundering Prevention (OMLP) is the primary AML/CTF regulatory body in Slovenia. The OMLP’s responsibilities, as outlined by the AML Act, include gathering, maintaining, analyzing, and distributing relevant information. Several other regulators contribute significantly to this field, among which are:

  • Securities Market Agency
  • Bank of Slovenia
  • Agency for Public Oversight of Auditing
  • Insurance Supervision Agency
  • Slovenian Bar Association
  • Financial Administration
  • Market Inspectorate
  • Slovenian Institute of Auditors
  • Chamber of Notaries of Slovenia

Crimes and Penalties

Money laundering and terrorist financing are criminal offenses under Slovenian law, carrying penalties of up to 15 years in prison and fines based on the offense’s severity. Legal entities face fines or asset confiscation if they violate these regulations.

AML Legislation

The Prevention of Money Laundering and Terrorist Financing Act, enacted in October 2016, imposes fines for non-compliance with obligations, such as customer due diligence, record-keeping, and suspicious transaction reporting. Infringement penalties may reach up to EUR 5 million or up to 10% annual turnover of the parent undertaking, based on their consolidated accounts for the previous year.

AML Enforcement

Though improvements have been made in AML investigations as per MONEYVAL, there is a need for Slovenia to be more proactive in analyzing and charging money laundering cases related to serious crime, according to their risk profile. The AML Act applies to over 40 types of enterprises, including:

  • Banks
  • Financial institutions
  • Payment service providers
  • Legal professionals
  • Insurance companies

Staying Compliant

Compliance with AML regulations is vital for financial institutions and designated non-financial businesses and professions (DNFBPs) to effectively combat financial crime. To assist organizations in staying compliant and navigating the evolving AML landscape, Sanction Scanner offers customized solutions. If you want to learn more about Sanction Scanner’s AML solution, contact us to schedule a demo.