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 signatory to various international anti-corruption treaties and has laws criminalizing bribery, yet corruption remains a significant issue for the business community, with a majority of respondents in a survey perceiving it as part of the business culture. Despite some regulatory changes and the establishment of an anti-corruption policy, enforcement is weak, particularly at high levels, and political influence often hampers investigations. Companies, especially those with foreign ownership, may adopt internal ethical codes, but challenges such as lack of transparency and bureaucratic inefficiencies continue to hinder the business environment.

Slovakia is a small, open, export-oriented economy with a population of 5.4 million, having joined the EU in 2004 and the Eurozone in 2009. 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 high perceptions of corruption, Slovakia remains an attractive destination for foreign direct investment, particularly in the automotive and manufacturing sectors.

Slovakia offers a favorable investment climate characterized by its EU and Eurozone membership, strategic geographic location, and a positive government stance towards foreign direct investment (FDI). The country has attracted significant FDI, particularly in the automotive sector, although challenges such as a lack of innovation investment, an inefficient judiciary, and high social insurance costs persist. Despite these challenges, the government provides various investment incentives, making Slovakia an appealing destination for foreign investors.