Countries/Jurisdictions of Primary Concern - Slovenia

Bureau of International Narcotics and Law Enforcement Affairs
Report

Slovenia is not a major drug producer, but is a transit country for drugs moving via the Balkan route to Western Europe. The Government of Slovenia is aware that Slovenia’s geographic position makes it an attractive potential transit country for drug smugglers, and it continues to pursue active counter-narcotics policies. Other money laundering predicate offenses of concern include business and tax fraud.

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, savings banks, money remitters, and providers of payment services; post office; investment companies, brokerage companies, and managers of pension and investment funds; insurance companies and intermediaries; electronic money services and currency exchanges; auditing firms; gaming entities and games of chance via the Internet or other telecommunications services; pawn shops; providers of credits, loans, mortgages, safekeeping, and factoring; financial leasing entities; accounting and tax services; companies trading in precious metals and stones and works of art; auctioneers; real estate intermediaries; trust and company service providers

REPORTING REQUIREMENTS:

Number of STRs received and time frame: 480 in 2014

Number of CTRs received and time frame: 14,004 in 2014

STR covered entities: Banks, savings banks, money remitters, and providers of payment services; post office; investment companies, brokerage companies, and managers of pension and investment funds; insurance companies and intermediaries; electronic money services and currency exchanges; auditing firms; gaming entities and games of chance via the Internet or other telecommunications services; pawn shops; providers of credits, loans, mortgages, safekeeping, and factoring; financial leasing entities; accounting and tax services; companies trading in precious metals and stones and works of art; auctioneers; real estate intermediaries; trust and company service providers

money laundering criminal Prosecutions/convictions:

Prosecutions: 10: January – June, 2014

Convictions: 4: January – June, 2014

Records exchange mechanism:

With U.S.: MLAT: NO Other mechanism: YES

With other governments/jurisdictions: YES

Slovenia 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: http://www.coe.int/t/dghl/monitoring/moneyval/Countries/Slovenia_en.asp

Enforcement and implementation issues and comments:

There are no major deficiencies in Slovenia’s key AML/CFT preventive standards. Weak supervision and lack of guidance to certain non-banking sectors could have an impact on the effectiveness of the AML/CFT regime.

An additional 37 cases were pending prosecution in the first half of 2014.

The Government of Slovenia has systems and procedures in place to facilitate both national and international cooperation. Banks and the Office of Money Laundering Prevention (OMLP), Slovenia’s financial intelligence unit (FIU), automatically check names against global blacklists provided by the Central Bank.

The OMLP has a right to stop a suspicious transaction for 72 hours. In that time period, the courts investigate the transaction and decide on its legitimacy. In 2014, this happened in at least seven cases. If the courts also find the transaction suspicious, they can temporarily block funds for three months. In 2014, this happened twice. In Slovenia, law enforcement can only confiscate funds or seize assets related to money laundering under criminal law. During the first half of 2014, the Government of Slovenia temporarily seized assets equaling approximately EUR 1,000,000 (approximately $1,140,000) as well as miscellaneous properties.