Countries/Jurisdictions of Primary Concern - Slovak Republic
Criminal activity in the Slovak Republic (Slovakia) is characterized by a high level of domestic and foreign organized crime, mainly originating from eastern and southeastern Europe. Slovakia is a transit and destination country for counterfeit and smuggled goods, auto theft, value-added tax fraud, and trafficking in persons, weapons, and illegal drugs. Many of the same organized crime groups are involved in laundering funds raised from these criminal activities. Trade-based money laundering and possible terrorist financing are concerns. There are no indications that significant funds generated by public corruption are being laundered or used to finance terrorist activities. Slovakia has no offshore or free trade zones. Slovak authorities see the transfer of undeclared cash across borders as a possible money laundering vulnerability. Alternative remittance systems are not known to be widely used in Slovakia.
For additional information focusing on terrorist financing, please refer to the Department of State’s Country Reports on Terrorism, which can be found at: http://www.state.gov/j/ct/rls/crt/
Do FINANCIAL INSTITUTIONs engage in currency transactions related to international narcotics trafficking that include significant amounts of US currency; currency derived from illegal sales in the U.S.; or illegal drug sales that otherwise significantly affect the U.S.: NO
criminalizATION OF money laundering:
“All serious crimes” approach or “list” approach to predicate crimes: All serious crimes
Are legal persons covered: criminally: YES civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES Domestic: NO
KYC covered entities: Banks, the Export-Import Bank of the Slovak Republic, credit institutions, insurance companies, pension asset management companies, foreign currency exchanges, gaming operators, bankruptcy administrators, accountants, tax advisors, postal operators, real estate agents and intermediaries, foundations, non-profit organizations (NPOs), non-investment funds, and other special corporations managing and distributing funds
Number of STRs received and time frame: 3,886 in 2013
Number of CTRs received and time frame: Not applicable
STR covered entities: Banks, the Export-Import Bank of the Slovak Republic, credit institutions, insurance companies, pension asset management companies, foreign currency exchanges, gaming operators, bankruptcy administrators, accountants, tax advisors, postal operators, real estate agents and intermediaries, foundations, NPOs, non-investment funds, and other special corporations managing and distributing funds
money laundering criminal Prosecutions/convictions:
Prosecutions: 75 in 2013
Convictions: 12 in 2013
Records exchange mechanism:
With U.S.: MLAT: NO Other mechanism: YES
With other governments/jurisdictions: YES
The Slovak Republic is a member of the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), a FATF-style regional body. Its most recent mutual evaluation can be found at: www.coe.int/t/dghl/monitoring/moneyval/Countries/Slovakia_en.asp
Enforcement and implementation issues and comments:
In December 2013, the Slovak National Bank (NBU) issued three methodical instructions (no. 28/2013, 30/2013 and 34/2013) on the prevention of money laundering which are binding upon all entities that provide investment services and operate pension funds, including collective investment funds, insurance companies, and financial institutions. These instructions detail the procedures necessary to prevent money laundering, as pre-existing regulations did not offer adequate guidance for many practical situations. The new guidance and instructions also provide legal certainty about the criteria applied by the NBU under its regulatory authority.
The NBU instructions provide definitions for “illicit funds” and “laundering,” and highlight the responsibility of relevant entities to develop plans to protect against money laundering and terrorism financing, to raise awareness among employees, and to accurately identify clients and risk profiles. The instructions share best practices regarding the identification and reporting of unusual business operations. The guidance also cites domestic and international documents and recommendations issued by the Slovak Financial Intelligence Unit of the National Police Agency and regional AML/CFT groups.