Financial Crime World

Title: Slovenian Laws Crack Down on Money Laundering and Terrorist Financing: An Overview

Does Slovenian Law Make it a Criminal Offense to Engage in Money Laundering and/or Terrorist Financing?

Slovenia, a European Union member since 2004, has stringent legislation against money laundering and terrorist financing. The country’s Criminal Code forbids both offenses under specific articles.

Question: Does Slovenian law make it a criminal offense to engage in money laundering and/or terrorist financing?

Answer: Yes, ¶1½.

  • Money laundering is a criminal offense under Article 245.
  • Terrorist financing is a criminal offense under Article 109.

To Whom Does the Legislation Apply?

Question: To whom does the legislation apply?

Answer: Anyone, be they a physical person or a legal entity, can commit these offenses. However, certain individuals and businesses are required by the Prevention of Money Laundering and Terrorist Financing Act (PMLTFA) to implement measures to detect and prevent such activities.

Prohibitions Regarding Money Laundering and Terrorist Financing

Money Laundering

Article 245 of the Criminal Code forbids concealing or attempting to conceal the illicit origin of funds or property using various methods. This includes:

  • Accepting
  • Exchanging
  • Storing
  • Disposing of or using the money or property in an economic activity or other ways defined by the PMLTFA.

Terrorist Financing

Article 109 of the Criminal Code prohibits providing or collecting money or property for financing terrorism-related criminal offenses, such as terrorism, traveling abroad with the intention to commit terrorism, and incitement of terrorism.

Definitions and Required Proof

Money Laundering Definition

Money laundering is defined as concealing or attempting to conceal the illicit origin of money or property using various methods.

Proof of Underlying Criminal Activity

Prosecutors need to prove the underlying criminal activity by objective criteria, including the existence of the predicate offense but not requiring the knowledge of the perpetrator or a final judgment against them.

Required Intent or Knowledge

Money Laundering

The perpetrator must act intentionally or with ordinary negligence.

Terrorist Financing

The perpetrator must act intentionally.

Penalties

Infringing money laundering or terrorist financing laws can result in:

  • Imprisonment
  • Significant fines
  • Forfeiture of the laundered funds or property

Extra-territorial Reach

The Criminal Code has some extra-territorial reach. It applies to Slovenian citizens or entities who commit money laundering or terrorist financing abroad and to universal jurisdiction crimes. Prosecutions against foreign individuals may require government approval.

Additional Anti-Money Laundering and Counter-Terrorist Financing Regulations for Businesses and Individuals

The PMLTFA sets out measures for detecting and preventing money laundering and terrorist financing. Various groups, including financial institutions, lawyers, notaries, and real estate agents, are obligated to implement these measures and report suspicious activities and transactions to the Office of the Republic of Slovenia for the Prevention of Money Laundering (AML Office).

Penalties for Failing to Comply with Obligations

Breaching these obligations can result in significant fines for businesses and individuals and the revocation of licenses to carry out business.

Relevant Enforcement Authorities and Contact Information

The Office of the Republic of Slovenia for the Prevention of Money Laundering is the primary authority for enforcing these regulations. Their contact details are:

Note: ¶1½ refers to the two halves of the first question and answer.