Overview of Money Laundering in Slovakia
As in many parts of the world, money laundering activities also take place in Slovakia. These criminal activities negatively affect the economy of Slovakia, so there are a number of Anti-Money Laundering regulations and laws to reduce money laundering activities. According to the International Narcotics Control Strategy Report (INCSR) submitted by the US Department of State in 2016, Slovakia has been recognized as a Concerned Jurisdiction. In Slovakia, such criminal activity is generally carried out in eastern and southeastern Europe.
Some of the crimes associated with money laundering in Slovakia are as follows; auto theft, contraband, tax fraud, arms, and illegal drug smuggling. Slovakia is also a transit and destination country for laundering money obtained from these crimes. Besides, there is no free trade zone and high seas in Slovakia, nor are there any international sanctions in place against the country. Slovakia has a population of 5.4 million, and when we look at its economy, there are exports of about 93% of GDP; it has an open economy, and the banking sector in the country is also robust.
Financial FATF Status of Slovakia
Slovakia is one of the countries that must comply with FATF recommendations, and the last Mutual Assessment Report prepared by FATF for Slovakia was prepared in 2011. This report has been prepared for the implementation of anti-money laundering and counter-terrorism financing standards in Slovakia. According to the evaluation, Slovakia is compliant with most of the FATF recommendations and is not included in the FATF AML list of countries with deficiencies.
Regulators in Slovakia
There are also some regulatory institutions in Slovakia to reduce the effects of money laundering. The Financial Intelligence Unit is an authority responsible for overseeing compliance with the Slovak AML Act. Apart from this, there are some authorities that have supervisory authority within the scope of special regulation. If the organizations meet the definition of "obliged entities" under the Slovak AML Act, the regulators are responsible for the supervision of these entities. Examples of such regulatory authorities are the National Bank of Slovakia, the Financial Directorate of the Slovak Republic, tax and customs offices. Before the audit activities of these institutions start, information about any investigation related to the obliged entity being audited is sent to the Financial Intelligence Unit and informed.
Likewise, if any unusual business transaction or non-compliance with Slovak AML Law is detected on these institutions, the administrative sanctions imposed in return should be reported to the Financial Intelligence Unit. Finally, the organizations obliged to be audited audits can also be carried out by the Financial Intelligence Unit and the relevant supervisory authority.
Obligated Institutions in Slovakia
Under the Slovak AML Act, some institutions must comply with money laundering regulations. In addition, within the scope of these regulations, organizations are obliged to report any suspicious transaction to the required authority. The following institutions can be given as examples of obliged institutions:
- stock exchange businesses
- securities warehouse
- management companies
- tax and economic consultants
- some companies that offer insurance services
- post offices
- notary officers