Financial Crime World

Slovenia’s Anti-Money Laundering Rules Get Thumbs Up in Latest FATF Review

Ljubljana, Slovenia - A Positive Indication of Progress

Slovenia has been praised for its efforts to combat money laundering and terrorist financing, with the latest report from the Financial Action Task Force (FATF) showing significant progress.

Areas of Improvement

The 2022 Follow-Up Report on Slovenia’s implementation of anti-money laundering (AML) regulations highlights several areas where the country has improved its compliance. Specifically:

  • Risk Assessment: Slovenia has strengthened its risk assessment and applied a risk-based approach to AML/CFT measures.
  • Targeted Financial Sanctions: The report notes that Slovenia has made significant progress in implementing targeted financial sanctions related to terrorism and terrorist financing, as well as those related to proliferation.

Areas for Improvement

While Slovenia has shown significant progress, there are still some areas where improvement is needed. These include:

  • Cooperation between Financial Institutions and Law Enforcement Agencies: The report recommends enhancing cooperation between these entities.
  • Transparency and Beneficial Ownership: Increasing transparency and beneficial ownership of legal persons and arrangements is also recommended.

FATF Ratings

The FATF has given Slovenia a largely compliant rating in several areas, including:

  • National cooperation and coordination
  • Confiscation and provisional measures
  • Non-profit organizations
  • Customer due diligence
  • Record keeping
  • Internal controls and foreign branches and subsidiaries

However, there are some areas where Slovenia has been rated partially compliant, including:

  • Terrorist financing offence
  • Targeted financial sanctions related to terrorism and terrorist financing
  • Powers of supervisors

Recommendations for Improvement

The report also notes that Slovenia needs to improve its regulation and supervision of financial institutions, particularly in terms of the powers of supervisors. Additionally, the country should strengthen its financial intelligence units and provide more guidance and feedback to financial institutions.

Conclusion

While there are still some areas where Slovenia needs to improve, the FATF’s latest report is a positive indication of the country’s efforts to combat money laundering and terrorist financing.