Financial Crime World

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Slovenia Tightens Banking Regulations to Combat Financial Crime

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Ljubljana, Slovenia - In a bid to strengthen the country’s financial sector and prevent illicit activities, Slovenian authorities have introduced a slew of banking regulations aimed at combating financial crime.

Prevention of Money Laundering and Terrorist Financing Act

At the heart of these reforms is the Prevention of Money Laundering and Terrorist Financing Act, which was passed in 2016. This law requires banks and other financial institutions to implement robust anti-money laundering (AML) and counter-terrorism financing (CTF) measures, including:

  • Customer due diligence
  • Transaction monitoring
  • Reporting suspicious activities

The act also establishes a national risk assessment framework to identify potential AML/CTF risks and vulnerabilities in the financial sector. Financial institutions are required to conduct regular risk assessments and implement mitigation strategies to address these risks.

Macroprudential Supervision of the Financial System Act

In addition to the Prevention of Money Laundering and Terrorist Financing Act, Slovenian authorities have introduced other regulations aimed at strengthening the country’s banking sector. These include:

  • Macroprudential Supervision of the Financial System Act: enables the Bank of Slovenia to take targeted measures to mitigate systemic risk in the financial system.
  • Bank Resolution Authority and Fund Act: provides a framework for resolving failed banks and establishing a resolution fund to protect depositors’ interests.

Central Credit Register Act

The Central Credit Register Act requires credit institutions to report loan data to a central register, which is used to monitor credit risk and prevent over-indebtedness.

Financial Instruments Market Act

The Financial Instruments Market Act regulates trading on organized markets and ensures that investors have access to accurate and timely information about market participants.

Transparency of Securities Financing Transactions Act

Slovenian authorities have also introduced regulations aimed at enhancing the transparency of financial transactions. These include:

  • Transparency of Securities Financing Transactions Act: requires financial institutions to disclose securities financing transactions and their reuse.
  • Regulation (EU) 2015/2365: provides a framework for the reporting of securities financing transactions.

Tariff System

The Bank of Slovenia has established a tariff system to charge fees for services provided by the bank, including exchange rate management, statistical reporting, and payment processing.

Code of Conduct

The Bank of Slovenia has adopted a code of conduct that sets out the principles for its operations and ensures that it acts in accordance with good governance practices.

Key Banking Regulations in Slovenia

  1. Prevention of Money Laundering and Terrorist Financing Act
  2. Macroprudential Supervision of the Financial System Act
  3. Bank Resolution Authority and Fund Act
  4. Central Credit Register Act
  5. Financial Instruments Market Act
  6. Transparency of Securities Financing Transactions Act