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.

Corruption remains a significant issue in Slovakia, with laws criminalizing bribery and corruption, including indirect forms, but enforcement is inconsistent. In 2023, 77 individuals were indicted for corruption-related crimes, reflecting a slight decrease from previous years, while public perception of corruption remains high, with 74% of respondents believing it is part of the business culture. Recent legal changes, including the abolishment of the Special Prosecutor’s Office and reduced penalties for corruption, have raised concerns about the government's commitment to combating corruption, prompting criticism from civil society and international organizations.

Slovakia has a small, open, export-oriented economy with a population of 5.45 million, characterized by modest growth of 1.2 percent in 2023, impacted by external factors such as cooling foreign demand and energy crises. The country is a significant player in the automotive industry, being the largest per capita car producer globally, and has made substantial investments to reduce its dependence on Russian energy imports. Despite challenges like high inflation and public finance sustainability, Slovakia remains an attractive destination for foreign direct investment due to its skilled workforce and favorable geographic location.

Slovakia presents a favorable investment climate characterized by its open, export-oriented economy and strategic location in Europe, which attracts significant foreign direct investment (FDI). The government actively encourages FDI through various incentives, although challenges such as legal uncertainty, corruption, and regional disparities persist. Recent government priorities include attracting higher value-added investments and effectively utilizing EU funds for key reforms and regional development.