Financial Crime World

Slovenia Steps Up Efforts Against Financial Crime as FATF Review Looms

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As the global fight against money laundering and terrorist financing continues, Slovenia is working to strengthen its anti-money laundering (AML) regulations and enforcement mechanisms to align with international standards. The country’s AML/CFT regime has made significant progress in recent years, but there remains a notable gap in effectiveness, highlighting the need for further action.

FATF Review and Compliance

According to the 2023 Mutual Evaluation Report, Slovenia was deemed Compliant for 11 and Largely Compliant for 28 of the FATF 40 Recommendations. While this indicates that the country’s AML/CTF measures are largely aligned with international standards, there is still room for improvement.

Regulatory Bodies

The Ministry of Finance’s Office for Money Laundering Prevention (OMLP) serves as the primary AML/CFT supervisory authority in Slovenia. Other regulatory bodies include:

  • 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

Criminal Penalties

Slovenian law criminalizes money laundering and terrorist funding as separate offenses, with penalties ranging from one to 15 years in prison, depending on the severity of the offense. Legal entities can also face criminal charges, fines, or confiscation of property.

Prevention of Money Laundering and Terrorist Financing Act

The Prevention of Money Laundering and Terrorist Financing Act, passed in 2016, imposes various penalties for failure to comply with essential obligations such as:

  • Customer due diligence (CDD)
  • Record-keeping
  • Suspicious transaction reporting

Fines can reach up to EUR 5 million or 10% of the parent undertaking’s annual turnover.

Recommendations from MONEYVAL

Despite progress made in recent years, MONEYVAL has noted that the battle against money laundering and terrorist financing is not yet fully prioritized. The organization recommends that authorities take a more proactive approach to analyzing and charging money laundering cases related to serious crime, aligning with Slovenia’s risk profile.

Scope of AML Regulations

Over 40 types of enterprises are subject to AML regulations in Slovenia, 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 combat financial crime effectively.

Innovative AML Solutions

Sanction Scanner offers innovative AML solutions to assist organizations in meeting regulatory requirements and staying ahead of the evolving AML landscape. For more information on how Sanction Scanner can help you comply with AML regulations in Slovenia, contact us today for a demo.