Title: Slovenian Law Cracks Down on Money Laundering and Terrorist Financing: Penalties and Compliance Obligations
Anyone, from a physical person to a legal entity, can find themselves on the wrong side of the law in Slovenia if they engage in money laundering or terrorist financing.
Money Laundering and Terrorist Financing in Slovenia
Money laundering and terrorist financing are criminal offenses in Slovenia. Here’s an overview of the relevant legislation, penalties, and compliance obligations.
Is Money Laundering and Terrorist Financing a Criminal Offense in Slovenia?
- Yes, the Slovenian Criminal Code criminalizes money laundering under Article 245 and terrorist financing under Article 109.
Scope of Application
- The legislation applies to all individuals and entities.
- Those obliged to implement prevention measures are outlined in Article 4 of the Slovenian Prevention of Money Laundering and Terrorist Financing Act (the PMLTFA).
Prohibited Acts
- Money laundering is the concealment or attempt to conceal the origin of money or property derived from criminal activities.
- Terrorist financing involves providing or collecting funds for terrorism-related offenses.
Money Laundering - Definition and Intent
- Money laundering involves disguising the illegally-gained funds by accepting, exchanging, storing, disposing of, or using them in an economic activity.
- The underlying criminal activity must be proven objectively, but the identity of the criminal is not required, and a final judgment against the offender is not necessary.
- To be convicted of money laundering, a person must have acted intentionally or with ordinary negligence.
- Terrorist financing requires an intentional act.
Penalties
- Penalties for money laundering include up to five years imprisonment, up to eight years imprisonment with a significant financial penalty, and up to ten years imprisonment if committed within a criminal organization.
- Terrorist financing penalties range from one up to ten years imprisonment for the basic offense and up to 15 years if committed within a criminal organization.
- In both cases, the seized money or property is confiscated.
Extra-Territorial Reach
- The Slovenian Criminal Code applies to money laundering and terrorist financing committed abroad by Slovenian citizens or entities and is recognized as a universally-criminalized offense.
Compliance Obligations and Consequences
Relevant Groups and Requirements
- The PMLTFA requires over 20 groups of subjects to detect and prevent money laundering and terrorist financing.
- These subjects must report suspicious activities and transactions to the Office of the Republic of Slovenia for the Prevention of Money Laundering (AML Office).
Non-compliance Consequences
- Failing to report suspicious activities and transactions to the AML Office can result in fines of up to EUR 5,000,000, revocation of business permissions, or bans from performing management duties.
- Failure to register as a virtual and fiat currency exchange or custodian valet service provider can result in a fine of up to EUR 120,000.
Enforcement Authorities
- To report suspicious activities, contact the Office of the Republic of Slovenia for the Prevention of Money Laundering at Cankarjeva ulica 51000 Ljubljana.
- Email: sloveniamf.uppd@gov.si
- Website: www.gov.si/en/state-authorities/bodies-within-ministries/office-for-money-laundering-prevention/
- Phone number: +386 142 541 89