AML in Slovakia

Similar to various regions across the globe, Slovakia experiences instances of money laundering activities. These illicit undertakings detrimentally impact the country’s economy, prompting the establishment of a range of Anti-Money Laundering regulations and legislation aimed at curbing such practices. In the 2016 International Narcotics Control Strategy Report (INCSR) released by the US Department of State, Slovakia was identified as a Concerned Jurisdiction. Typically, these unlawful activities tend to be concentrated in the eastern and southeastern European sectors of Slovakia.

Various criminal acts contribute to the money laundering landscape in Slovakia, including auto theft, smuggling, tax fraud, arms trafficking, and the illicit transport of drugs. Slovakia often serves as both a transit point and a destination for laundering the proceeds derived from these criminal activities. Moreover, it’s worth noting that Slovakia lacks both a free trade zone and territorial waters, and the country is not subject to international sanctions.

With a population of 5.4 million, Slovakia boasts an economy where exports account for approximately 93% of its GDP. It operates an open economy and possesses a robust banking sector.

Slovakia has established regulatory bodies to counteract the impact of money laundering activities. The Financial Intelligence Unit assumes the role of the overseeing authority, responsible for ensuring adherence to the Slovak AML Act. In addition, certain supervisory bodies possess authority under specialized regulations. When entities fall within the definition of “obliged entities” according to the Slovak AML Act, these supervisory bodies are tasked with monitoring their compliance. Notable examples of such regulatory entities include the National Bank of Slovakia, the Financial Directorate of the Slovak Republic, as well as tax and customs offices.

Prior to the commencement of audit procedures by these institutions, the Financial Intelligence Unit is provided with information pertaining to any investigations concerning the subject obliged entity, ensuring awareness of ongoing inquiries.

Furthermore, should any unusual business transactions or violations of the Slovak AML Law be detected within these institutions, the resulting administrative sanctions must be promptly reported to the Financial Intelligence Unit. Lastly, audits of the entities required to undergo assessment can also be carried out by both the Financial Intelligence Unit and the pertinent supervisory authority.

In accordance with the provisions of the Slovak AML Act, certain establishments are mandated to adhere to money laundering regulations. Furthermore, as stipulated by these regulations, organizations are obligated to promptly report any transactions that raise suspicion to the designated authorities. The subsequent institutions are illustrative of the entities classified as obliged institutions:

– Banks
– Stock exchange enterprises
– Securities depositories
– Asset management firms
– Tax and financial advisors
– Select insurance service providers
– Accountancy firms
– Postal services
– Audit firms
– Legal practitioners
– Notarial officers