What is AML?

AML stands for "anti-money laundering," referring to measures designed to prevent the laundering of illicit funds. In practice, AML typically encompasses a set of rules or procedures intended to prevent money laundering—commonly used to refer to the legalization of proceeds from criminal activities. You can read more in our article.

AML Legislation

The primary AML legislation in Slovakia is contained in Act No. 297/2008 on the Prevention of Money Laundering and Terrorism Financing, as well as on Amendments and Additions to Certain Acts (referred to here as the "AML Act"). This Act replaced the former legal framework under Act No. 367/2000 Coll. Additional resources related to AML compliance are available on the Financial Intelligence Unit's website.

Legalization

According to Section no. 2, paragraph 1 of the AML Act, legalization is defined as the intentional act of:

• Altering the nature of assets or transferring assets while knowing that they originate from criminal activities or participation in such activities, with the aim of concealing or disguising their illegal origin or assisting a person involved in these criminal activities in evading legal consequences.

• Concealing or disguising the source or nature, location, transfer, ownership, or other rights associated with assets, knowing they originate from criminal activity or participation in such activity.

• Acquiring, possessing, using, or benefiting from assets while knowing they derive from criminal activity or participation in such activity.

• Participating in the above activities, including through collusion, assistance, encouragement, and incitement, as well as attempting to carry out such actions.

Legalization of Proceeds from Criminal Activities

Legalizing proceeds from criminal activities is a criminal offense under the special section of the Criminal Code (Section no 233, 233a, and 234). This offense is committed by any person who:

This offense is committed by any person who:

• Acquires, stores, or uses an asset when it is the proceeds of criminal activities committed by another person in Slovakia or abroad.

• Hides or transfers an asset to oneself or others when it is the proceeds of criminal activity committed in Slovakia or abroad.

• Alters the nature of an asset that is the proceeds of criminal activity committed in Slovakia or abroad, pledges it, or otherwise disposes of it with the intent to evade prosecution, punishment, protective measures, or enforcement for oneself or another.

• Conceals the existence of an asset that is the proceeds of criminal activity committed in Slovakia or abroad, including by concealing its origin, location, ownership, or other rights to it.

• Negligently hides, transfers, stores, or uses an asset of significant value that is the proceeds of criminal activity committed by another person in Slovakia or abroad.

• Allows another person to conceal or prevent the tracing of the origin of an asset of significant value that is the proceeds of criminal activity committed in Slovakia or abroad, due to negligence.

• Fails to report or notify authorities, despite having a duty arising from their employment, profession, status, or position, of facts suggesting another person has committed the offense of legalizing criminal proceeds according to the points above or has financed terrorism under Section no 419c of the Criminal Code, or engages in an unusual business operation, except when such notification would expose themselves or a close person to criminal prosecution.

What We Can Do for You in the AML Area

• Comprehensive legal advice on anti-money laundering.
• Developing an in-house AML program and additional internal documentation.
• Representing you in case of an audit by the Financial Intelligence Unit.
• Personal, phone, and online consultations and training.
• Unsure who the beneficial owner in your company is? Consult with us. Poraďte sa s nami.

Also read:

Kto je povinná osoba podľa AML zákona?

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Trends in unusual business operations

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