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 lacks a specific bribery statute akin to the U.S. Foreign Corrupt Practices Act, but its Criminal Code includes provisions against various forms of corruption in the economic sector. Despite having legal frameworks to combat corruption, enforcement remains weak, and businesses often perceive bribery as a common practice, particularly in public procurement processes. Recent audits and investigations have revealed irregularities and favoritism in tendering processes, highlighting ongoing challenges in ensuring transparency and integrity within the system.

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, particularly post-COVID-19, with a GDP growth rate of 8.1% in 2021 and 5.37% in 2022, although growth slowed to 1.6% in 2023 due to inflation and energy price increases. Slovenia's economy is heavily reliant on foreign trade, supported by modern infrastructure and a skilled workforce, but faces challenges such as bureaucratic hurdles and a significant state-owned sector.

Slovenia offers a favorable investment climate characterized by modern infrastructure, a skilled workforce, and strategic access to EU and Balkan markets. However, potential investors may encounter challenges such as bureaucratic red tape, high taxes, and a lack of transparency in decision-making processes. Despite these hurdles, foreign direct investment (FDI) has been growing, with significant contributions from Austria, Luxembourg, and the United States, particularly in sectors like manufacturing and finance.