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 signatory to various international anti-corruption treaties and has laws against bribery, yet corruption remains a significant concern for the business community, with a majority of respondents in a survey indicating it is ingrained in the business culture. Despite some efforts to enhance anti-corruption measures, including a new policy for 2019-2023, challenges persist due to political influence over law enforcement and a lack of effective prosecution of high-level corruption cases. The perception of widespread corrupt practices, such as bribery and nepotism, continues to undermine investor confidence and the overall integrity of the business environment.

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.