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Slovenia Steps Up Efforts to Enforce Financial Sanctions Amid Global AML Concerns

Ljubljana - In an effort to strengthen its anti-money laundering (AML) regulations and enforcement mechanisms, Slovenia has made significant strides in recent years.

Commitment to International Standards

As a member state of the European Union, Slovenia is committed to implementing international standards aimed at preventing the unauthorized purchase and use of funds obtained through illegal activities such as drug trafficking, terrorism, corruption, and organized crime.

Assessment by Financial Action Task Force (FATF)

According to the latest follow-up report on implementing anti-money laundering and counter-terrorist financing standards in Slovenia, the country was deemed Compliant for 11 and Largely Compliant for 28 of the FATF’s 40 Recommendations. However, there remains a notable gap in the effectiveness of its AML/CTF regime, indicating that more work is needed to ensure that these measures are achieving their intended objectives.

Regulatory Bodies Responsible for Enforcement

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

Criminalization and Penalties

Money laundering and terrorist funding are criminalized as separate offenses under the Slovenian Criminal Code. The penalties for these crimes range from one to 15 years in jail, depending on the severity of the offense, and may also include fines and seizure of assets.

Prevention of Money Laundering and Terrorist Financing Act

The Prevention of Money Laundering and Terrorist Financing Act, which was 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 and Future Direction

Despite progress made in recent years, MONEYVAL has noted that Slovenia still needs to prioritize the fight against money laundering and terrorist financing more proactively. The country’s AML/CTF regime is critical to combating financial crime effectively, and ensuring compliance with regulatory requirements is essential for financial institutions and designated non-financial businesses and professions (DNFBPs).

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