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.

US Department of State Money Laundering assessment (INCSR)

Slovakia was deemed a Jurisdiction of Concern by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR). Key Findings from the report are as follows: -

Criminal activity in the Slovak Republic (Slovakia) is characterized by a moderate to 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 (VAT) 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.

The Slovak Ministry of Interior’s Financial Intelligence Unit (FIU) has identified unusual transactions suspected of perpetrating tax fraud and evasion. A common tactic is the use of shell companies to execute complex commercial transactions through a system of “carousel trading” and, ultimately, to claim either unauthorized VAT refunds or evade tax payments. The FIU also has registered increased unusual transactions suspected of disguising illicit funds in bank accounts registered to Hungarian and Chinese citizens and business entities.

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.

The FIU also has noted increased incidences of online consumer fraud, including phishing and pharming attempts. Perpetrators of online consumer fraud frequently target those interested in purchasing automobiles, industrial equipment, mobile phones, or employment assistance. Perpetrators request the prepayment of a deposit and do not provide delivery of goods or services. Investigations have revealed victims transferred funds to bank accounts often controlled by Romanian citizens. Coordinated phishing attacks to gain illegal access to bank accounts have targeted account owners located in smaller Slovak villages.

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                         54

World Governance Indicator – Control of Corruption             60

Corruption is a problem for businesses in Slovakia. Companies cite the lack of transparency and inefficient government bureaucracy as the largest impediments to business. The Slovak Penal Code, the Criminal Procedure Code and the Specialised Criminal Act provide for the criminalisation of most forms of corruption, including active and passive bribery, bribery of foreign officials and extortion. However, insufficient law enforcement negatively affects foreign companies in Slovakia. Companies report the possibility of facilitation payments and bribes in the customs, public utilities, public procurement and judicial sectors. Facilitation payments and gifts are illegal under Slovak law, but officials in some sectors expect to receive gifts and irregular payments. For further information - GAN Integrity Business Anti-Corruption Portal

Slovakia has a small, open, export-oriented economy and a population of 5.45 million people. It joined the EU and NATO in 2004 and the Eurozone in 2009. Slovakia is an attractive destination for foreign direct investment (FDI), with a favorable geographic location in the heart of Europe and a skilled workforce. Government authorities generally encourage and display a positive attitude towards FDI. The current ruling coalition, which took power in March 2020 and continued its work in an interim capacity following a no-confidence vote in December 2022, has implemented a range of measures to improve the investment and business climate.

The Slovak economy grew by 1.7 percent in 2022, slowed by persisting supply-chain shortages related to the COVID-19 pandemic, and Russia’s full-scale invasion of neighboring Ukraine with associated inflation and energy crises. As a heavily industrialized and energy-intensive economy, Slovakia was particularly affected by surging prices and uncertainty on the energy markets. In response to the energy crisis, the Slovak government took unprecedented steps to reduce the country’s legacy dependence on Russian primary energy imports, and in 2023 set aside €3.4 billion (2.8 percent of GDP) to offset ballooning energy costs. Record-high energy prices and quickly growing food prices drove headline inflation in Slovakia to 22-year highs in 2022 at 12.8 percent year-over-year.

Attracting higher value-added investment is a priority for the current ruling coalition, as well as attracting investment in less-developed regions of Slovakia. The government made important progress in implementing the national Recovery and Resilience Plan, which presents a roadmap for spending €6.3 billion in EU grants by 2026 on key reforms and investments in the areas of green economy, education and research, healthcare, digitization, and rule of law. The government also launched implementation of EU Structural and Investment Funds in the 2021 – 2027 programing period, in which Slovakia received an allocation of €13.6 billion for investments into energy and the environment, research and innovation, infrastructure, and social capital. Inefficiencies hindering access to EU funds persist, however. Slovakia’s government continued its anti-corruption agenda and measures in 2022, resulting in an improvement in the business community’s perception of corruption’s impact on the business environment.

Slovakia remains the largest per capita car producer in the world, with four established car-manufacturers, an additional international automaker announcing plans to open a plant, and hundreds of suppliers. Manufacturing industries, including automotive; machinery and transport equipment; metallurgy; electronics; chemicals; and pharmaceuticals remain attractive and have the potential for further growth.  Due to the government’s focus on reducing dependence on Russian energy imports and growing demand from consumers, green energy production, energy efficiency products, and diversely sourced fossil-based and nuclear fuels are also sectors with potential.

Positive aspects of the Slovak investment climate include:

• Membership in the EU and the Eurozone
• An open, export-oriented economy close to western European markets
• Investment incentives, including for foreign investors
• A low-carbon energy mix
• A sound banking sector deeply integrated with Europe

Challenging aspects of the Slovak investment climate include:

• Legacy dependence on Russian primary energy imports
• High sensitivity to regional economic developments
• Weak public administration and an inefficient judiciary
• Significant regional disparities, suboptimal national transport network
• Relatively low rates of public and private R&D investment
• Heavy reliance on EU structural funds, chronic deficiencies in allocation of funds
• Tax rates above the regional average

Country Links

Financial Intelligence Unit of the National Criminal Agency (FSJ)​

National Bank of Slovakia