Slovakia Country Summary

FATF Status

Slovakia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Slovakia was undertaken in 2024. According to the follow-up Evaluation, Slovakia was deemed Compliant for 5 and Largely Compliant for 23 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 1 of the Effectiveness & Technical Compliance ratings.

Slovakia is a party to several international treaties aimed at combating corruption, yet it remains a significant issue within the business community, with a high percentage of respondents in a survey indicating that corruption is ingrained in the country's business culture. Despite legal frameworks against bribery and some recent government initiatives to enhance anti-corruption measures, enforcement remains weak, particularly for high-level corruption, and concerns about political influence over law enforcement hinder effective investigations. Additionally, Slovakia faces various criminal activities, including human trafficking, drug trafficking, and financial crimes, with ongoing challenges in governance and public trust impacting the effectiveness of its institutions.

Slovakia has a small, open, export-oriented economy with a population of 5.4 million, characterized by its membership in the EU and Eurozone. The country experienced a GDP growth of 4.3 percent in 2018, driven by export growth and domestic consumption, while maintaining the lowest unemployment rate in its history. Despite challenges such as a lack of investment in innovation and an inefficient judiciary, Slovakia remains an attractive destination for foreign direct investment, particularly in the automotive and manufacturing sectors.

Slovakia presents a favorable investment climate characterized by its EU and Eurozone membership, strategic geographic location, and a supportive regulatory environment for foreign direct investment (FDI). The government actively encourages FDI through various incentives, particularly in manufacturing and technology sectors, although challenges such as a tight labor market, corruption perceptions, and low R&D investment persist. The automotive industry remains a significant draw for investors, contributing to Slovakia's status as a leading car producer per capita.