Financial Crime World

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Evaluating Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Framework in Slovenia

The AML/CFT framework in Slovenia has been assessed to evaluate its effectiveness in preventing money laundering and terrorist financing. This report highlights various aspects of AML/CFT compliance, including supervision, internal controls, transparency of legal persons and arrangements, and international cooperation.

Key Findings

Supervision

  • Supervisors are effective in preventing convicted criminals from becoming directors or beneficial owners of Financial Institutions (FIs).
  • However, they lack effectiveness in detecting and preventing individuals with a criminal background from gaining ownership or management positions in FIs.

Internal Controls

  • Internal controls in DNFBP (Designated Non-Financial Business and Professions) sectors appear to be limited.

Risk-Based Approach

  • Only the Bank of Slovenia (BoS) has adopted a risk-based approach to AML/CFT supervision.
  • Other supervisors do not implement this approach, which can lead to inadequate risk assessment and management.
  • Although Slovenia has demonstrated an understanding of general vulnerabilities, there are concerns about the accuracy and up-to-dateness of information on legal entities in the Business Register.
  • This lack of transparency can hinder the effective identification and monitoring of high-risk individuals and entities.

International Cooperation

  • Slovenia has a satisfactory legal framework for providing Mutual Legal Assistance (MLA) and serving extradition requests.
  • However, there may be gaps in cooperation with other countries, which can impede the effective prevention and investigation of money laundering and terrorist financing offenses.

Conclusion

The report highlights areas where Slovenia needs to improve its AML/CFT compliance. Enhancing supervision, internal controls, transparency of legal persons and arrangements, and international cooperation are crucial steps towards strengthening the country’s AML/CFT framework. By addressing these gaps, Slovenia can better prevent money laundering and terrorist financing, and contribute to a safer and more stable financial system.