FATF status

Slovenia 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 to the Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Slovenia was undertaken in December 2023. According to that Evaluation, Slovenia was deemed Compliant for 11 and Largely Compliant for 29 of the FATF 40 Recommendations. It remains rated Highly Effective for 0 and Substantially Effective for 1 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Slovenia's legal framework addresses corruption through its Criminal Code, which criminalizes various offenses such as bribery, money laundering, and embezzlement. Despite these laws, enforcement remains weak, and corruption persists, particularly in public procurement, where favoritism and cronyism are common. U.S. companies report challenges in competing fairly due to non-transparent practices, although there is no evidence that corruption significantly hinders foreign direct investment.

Slovenia has a developed, export-oriented economy with a nominal GDP of $73.83 billion and a per capita GDP of $34,839. The country has experienced robust economic growth, rebounding from the COVID-19 pandemic with growth rates of 8.1% in 2021 and 5.37% in 2022, although growth slowed to 1.6% in 2023 due to rising inflation and energy prices. Slovenia's economy is heavily reliant on foreign trade, supported by modern infrastructure and a skilled workforce, but faces challenges such as a significant state-owned sector and bureaucratic hurdles for foreign investment.

Slovenia's investment climate is characterized by its modern infrastructure, a highly educated workforce, and strategic location within the EU, making it an attractive destination for foreign direct investment (FDI). However, potential investors face challenges such as bureaucratic hurdles, high taxes, and a significant state presence in the economy, which can create skepticism towards privatization and FDI. Despite these challenges, FDI in Slovenia grew to EUR 20.2 billion in 2022, with key sectors including manufacturing and financial services.