Financial Crime World

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Financial Institution Risk Management in Slovenia Under Scrutiny

Slovenia’s efforts to implement anti-money laundering (AML) and counter-terrorism financing (CFT) measures have been assessed by the Financial Action Task Force (FATF), a global body responsible for setting standards to combat financial crimes. In its latest report, the FATF has evaluated Slovenia’s compliance with its recommendations, highlighting areas of improvement.

Compliance Ratings

According to the report, Slovenia received a “largely compliant” rating in several key areas:

  • Assessing risk and applying a risk-based approach (R.1)
  • National cooperation and coordination (R.2)
  • Targeting financial sanctions related to terrorism and terrorist financing (R.6)
  • Record keeping (R.11)
  • Internal controls and foreign branches and subsidiaries (R.18)

Areas for Improvement

However, Slovenia was found to be “partially compliant” in several areas:

  • Confiscation and provisional measures (R.4)
  • Terrorist financing offence (R.5)
  • Targeted financial sanctions related to proliferation (R.7)
  • Customer due diligence (R.10)
  • Wire transfers (R.16)

Additionally, Slovenia received a “non-compliant” rating for:

  • Handling of non-profit organizations (R.8)
  • Transparency and beneficial ownership of legal persons and arrangements (R.24 and R.25)

Recommendations

Slovenia’s financial institutions have been advised to improve their risk management practices in areas such as:

  • Correspondent banking (R.13)
  • Money or value transfer services (R.14)
  • New technologies (R.15)

The country has also been urged to enhance its regulation and supervision of financial institutions (R.26) and designated non-financial businesses and professions (DNFBPs) (R.28).

Conclusion

The FATF report provides a comprehensive assessment of Slovenia’s AML/CFT framework, highlighting areas for improvement and providing recommendations for strengthening the country’s risk management practices. The report is expected to inform policy decisions aimed at enhancing the country’s financial stability and integrity.