AML in Slovenia

Money laundering and the financing of terrorism are defined as distinct criminal offenses within the Slovenian Criminal Code. The prescribed penalties for these acts, as stipulated by the Criminal Code, span from one to 15 years of imprisonment, contingent on the gravity of the offense. In specific cases, the court may also levy fines and order the confiscation of assets and funds, in addition to the custodial sentence.

Slovenian legislation extends the scope of criminal accountability to legal entities. The severity of the offense determines the sanctions a legal entity might face, including fines or the forfeiture of assets, alongside the potential dissolution of the entity itself.

Encompassing vital obligations such as Customer Due Diligence (CDD), record retention, and the reporting of suspicious transactions, the AML Act establishes an array of penalties for non-compliance. The magnitude of fines hinges on factors like the nature of the violation, the identity of the violator, and whether the breach is initial, repetitive, or systematic. In extreme cases, fines can amount to EUR 5 million or up to 10% of the annual turnover of the parent organization, according to the previous year’s consolidated financial records of the parent entity.

While recent years have exhibited signs of advancement in the realm of ML/TF investigations, MONEYVAL has indicated that there’s room for greater prioritization. They recommend that authorities exhibit heightened proactivity in scrutinizing and prosecuting money laundering tied to severe criminal activity, aligning with Slovenia’s specific risk assessment.

The principal regulatory authority overseeing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) efforts is the Office for Money Laundering Prevention (OMLP), operating under the Ministry of Finance. In accordance with the AML Act, the OMLP possesses the capacity to gather, maintain, scrutinize, analyze, and disseminate relevant information.

Additional regulatory bodies responsible for AML/CTF include:

– The Securities Market Agency
– The Bank of Slovenia
– The Agency for Public Oversight of Auditing
– The Insurance Supervision Agency
– The Slovenian Bar Association
– The Financial Administration
– The Market Inspectorate
– The Slovenian Institute of Auditors
– The Chamber of Notaries of Slovenia

The amended Prevention of Money Laundering and Terrorist Financing Act, known as the “AML Act,” was enacted on October 20, 2016.

According to the provisions within the AML Act, there exists a comprehensive list of over 40 types of entities that fall under its scope, encompassing a range of sectors such as banks, financial institutions, payment service providers, postal services, insurance and reinsurance companies, intermediaries, investment funds, and even attorneys and notaries under specific circumstances.

The ambit of obligated entities mirrors the coverage outlined in the 4th and 5th AML Directives. However, it’s worth noting that the category of “other persons trading in goods” with cash transactions amounting to EUR 10,000 or more has not been incorporated in the list of covered entities. This is due to a provision within the AML Act that prohibits the acceptance of cash payments exceeding EUR 5,000 by those engaged in the sale of goods or provision of services.