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 the Criminal Code, which criminalizes various offenses including bribery, embezzlement, and money laundering. Despite these laws, enforcement remains weak, with few successful prosecutions and a perception among businesses that bribery is a common practice. Corruption continues to be a concern, particularly in public procurement, where favoritism and lack of transparency hinder fair competition, impacting 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, and it remains attractive for foreign direct investment due to its modern infrastructure, educated workforce, and strategic location within the EU.

Slovenia offers a favorable investment climate characterized by modern infrastructure, a skilled workforce, and access to key EU markets, making it an attractive destination for foreign direct investment (FDI). However, potential investors face challenges such as bureaucratic hurdles, high taxes, and a lack of transparency in decision-making processes. Despite these obstacles, FDI in Slovenia has seen growth, with significant contributions from countries like Austria and Germany, particularly in sectors such as manufacturing and finance.