Financial Crime World

Slovenia Steps Up Efforts to Combat Financial Crime

Slovenia has made significant progress in recent years in strengthening its anti-money laundering (AML) regulations and enforcement mechanisms. However, according to the latest report by the Financial Action Task Force (FATF), more work is needed to ensure the effectiveness of these measures.

FATF’s Mutual Evaluation Report

According to the FATF’s Mutual Evaluation Report, Slovenia was deemed Compliant for 11 and Largely Compliant for 28 of the 40 Recommendations. While this represents progress towards aligning its AML/Counter-Terrorist Financing (CFT) measures with international standards, there remains a notable gap in their effectiveness.

Regulatory Bodies

The Ministry of Finance’s Office for Money Laundering Prevention (OMLP) serves as the primary AML/CFT supervisory authority in Slovenia. Under the country’s AML Act, OMLP can collect, preserve, examine, analyze, and disseminate relevant information.

Other regulatory bodies play crucial roles in enforcing AML regulations, including:

  • 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

Penalties for Non-Compliance

Under Slovenian law, money laundering and terrorist funding are criminalized as separate offenses, punishable by penalties ranging from one to 15 years in jail. Legal entities can also face criminal charges, with sanctions including fines, confiscation of property, and winding up the entity.

The Prevention of Money Laundering and Terrorist Financing Act, modified in 2016, imposes various penalties for non-compliance with essential obligations such as customer due diligence (CDD), record-keeping, and suspicious transaction reporting. Fines can reach up to EUR 5 million or 10% of the parent undertaking’s annual turnover.

Challenges in ML/TF Investigations

While Slovenia has made progress in ML/TF investigations, MONEYVAL notes that more proactive efforts are needed to analyze and charge ML-related crimes, particularly those linked to serious crime.

AML Act and Regulatory Requirements

The AML Act applies to over 40 types of enterprises, including:

  • Banks
  • Financial institutions
  • Payment service providers
  • Post offices
  • Insurance companies
  • Investment funds
  • Certain attorneys and notaries

Complying with these regulations is crucial for financial institutions and designated non-financial businesses and professions (DNFBPs) to effectively combat financial crime.

Staying Ahead of AML Requirements

To assist organizations in meeting their regulatory requirements, Sanction Scanner offers innovative AML solutions. For more information on how to stay ahead of the evolving AML landscape, contact us to request a demo.

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