Title: Slovenia Cracks Down on Money Laundering and Terrorist Financing: An Overview of the Legislation
Slovenia, a small EU member state, is known for its robust legislation against financial crimes such as money laundering and terrorist financing. Let’s take a closer look at the Slovenian Criminal Code and the Prevention of Money Laundering and Terrorist Financing Act.
Questions and Answers
Is it a criminal offense to engage in money laundering and/or terrorist financing in Slovenia?
- Yes, money laundering is a criminal offense under Article 245 of the Slovenian Criminal Code.
- Yes, terrorist financing is a criminal offense under Article 109 of the same code.
Who does the legislation apply to?
The legislation applies to anyone, whether they are a physical person or a legal entity. However, certain groups are required by law to prevent and report money laundering and terrorist financing activities.
What is prohibited?
Money Laundering
- Concealing the origin of money or property derived from a criminal offense (Article 245 of the Criminal Code).
- Includes accepting, exchanging, storing, disposing of, or using the funds in an economic activity or any other manner.
Terrorist Financing
- Providing or collecting money or property for all stages of a terrorism offense (Article 109 of the Criminal Code).
- Includes training and recruitment.
How is money laundering defined in Slovenia? Does the underlying criminal activity need to be proven?
- Money laundering is defined as concealing the origin of money or property derived from a criminal offense.
- The perpetrator of the underlying criminal activity does not need to be identified, as long as the existence of the predicate offense is proven.
What level of intent or knowledge is required to establish a violation?
Money Laundering
- The offense requires the perpetrator to have acted either intentionally or with ordinary negligence.
Terrorist Financing
- The offense requires the perpetrator to have acted intentionally.
What are the potential penalties for infringing the legislation?
Money Laundering
- Imprisonment (up to five years for the basic form, up to eight years if the value of laundered funds exceeds €50,000).
- Imprisonment from one to ten years if the offense is committed within a criminal organization.
- Up to two years with negligence.
- Confiscation of laundered money or property.
Terrorist Financing
- Imprisonment (one to ten years for the basic form, three to fifteen years if committed within a criminal organization).
- Confiscation of used money or property.
Does the legislation have extra-territorial reach?
Yes, the Slovenian Criminal Code applies to money laundering committed abroad by Slovenian citizens or entities and to universally recognized criminal offenses committed abroad.
Are there additional anti-money laundering or counter-terrorist financing regulations for businesses or individuals?
Yes, the Prevention of Money Laundering and Terrorist Financing Act sets out obligatory measures for the detection and prevention of money laundering and terrorist financing. Various groups of subjects, including financial institutions, are obliged to report suspicious transactions and activities to the Office of the Republic of Slovenia for the Prevention of Money Laundering.
What are the potential penalties for failing to comply with these obligations?
- Fines of up to €5,000,000.
- Revocation of business licenses.
- Bans from performing management duties.
- Failure to register as a virtual and fiat currency exchange service provider or as a provider of custodian valet services.
Who are the relevant enforcement authorities in Slovenia and how to contact them?
- The Office of the Republic of Slovenia for the Prevention of Money Laundering enforces these laws.
- Contact details: Cankarjeva ulica 5, 1000 Ljubljana; email: sloveniamf.uppd@gov.si; phone: +386 142 541 89.