Slovenia

1. Does Slovenia have legislation making it a criminal offence to engage in money laundering and/or terrorist financing?

Yes, money laundering is a criminal offence under Article 245 of the Slovenian Criminal Code (the “Criminal Code”) and terrorist financing is a criminal offence under Article 109 of the Criminal Code.

2. To whom does the legislation apply?

Anyone, i.e. any physical person or legal entity, can commit these criminal offences.

In the context of money laundering and terrorist financing, Article 4 of the Slovenian Prevention of Money Laundering and Terrorist Financing Act (the “PMLTFA”) lists persons who are obliged to carry out measures of detection and prevention of money laundering and terrorist financing set out in the PMLTFA. Omission to carry out these measures is a minor offence under the PMLTFA.

3. What does the legislation prohibit?

Regarding money laundering, Article 245 of the Criminal Code prohibits concealing or attempting to conceal the origin of money or property, which is known to have been obtained through a criminal offence, by accepting it, exchanging it, storing it, disposing of it or using it in an economic activity or in any other manner defined in the PMLTFA.

Regarding terrorist financing, Article 109 of the Criminal Code prohibits providing or collecting of money or property for partial or full financing of the following criminal offences: terrorism, travelling abroad with intention to commit terrorism, incitement and public glorification of terrorist activities, recruitment and training for terrorism.

4. How is money laundering defined? Does underlying criminal activity have to be proven?

Money laundering is defined as concealing or attempting to conceal the origin of money or property, which is known to have been obtained through a criminal offence, by accepting it, exchanging it, storing it, disposing of it or using it in an economic activity or in any other manner defined in the PMLTFA. Underlying criminal activity has to be proven by objective criterion, i.e. existence of the predicate criminal offence has to be proven, whereas it is not required to know the perpetrator of the predicate criminal offence and it is not required to have a final judgment issued to the offender of the predicate criminal offence.

5. What level of intent or knowledge is required to establish a violation?

The criminal offence of money laundering under Article 245 of the Criminal Code requires that the perpetrator acted intentionally or with ordinary negligence. Where there is negligence, potential penalties are less severe (see question 6 below). The criminal offence of terrorist financing under Article 109 of the Criminal Code requires that the perpetrator acted intentionally.

6. What are the potential penalties for infringing the legislation?

The potential penalties for the criminal offence of money laundering under Article 245 of the Criminal Code are: (i) up to five years imprisonment for the basic form of the offence; (ii) up to eight years imprisonment and a pecuniary penalty if the value of the laundered money or property exceeds EUR 50,000.00; (iii) imprisonment from one up to ten years and a pecuniary penalty if the offence is committed within a criminal organisation; (iv) up to two years imprisonment if the offence is committed with negligence. In all cases, the laundered money or property is confiscated.

The potential penalties for the criminal offence of terrorist financing under Article 109 of the Criminal Code are: (i) imprisonment from one up to ten years for the basic form of the offence; (ii) imprisonment from three up to 15 years if the offence is committed within a criminal organisation. In both cases, the used money or property is confiscated.

7. Does the legislation have extra-territorial reach?

Yes, to a certain extent, the Criminal Code has extra-territorial reach. Firstly, in line with the active personality principle, the Code applies to money laundering committed abroad by Slovenian citizens or legal entities. Secondly, in Slovenia, money laundering and terrorist financing are considered as universally recognized criminal offences. In line with the principal of universal jurisdiction, the Criminal Code applies to such criminal offences also extra-territorially. With the approval of the Slovenian Minister of Justice prosecution can begin also against foreign persons who committed such crimes abroad. In practice, such extra-territorial application could be considered in cases with a connection to Slovenia.

8. Are there additional anti-money laundering or counter terrorist financing regulations or obligations, such as registration or reporting obligations, for businesses or individuals that operate in particular sectors or undertake particular activities?

The PMLTFA sets out obligatory measures of detection and prevention of money laundering and terrorist financing. In Article 4, the PMLTFA lists more than 20 groups of subjects who are obliged to carry out these measures. These subjects are, in addition to their other duties, also obliged to report suspicious activities and transactions to the Office of the Republic of Slovenia for the Prevention of Money Laundering (the “AML Office”).

9. What are the potential penalties for failing to comply with these obligations?

The potential penalties under the PMLTFA for failing to report suspicious activities and transactions to the AML Office are: (i) fines of up to EUR 5,000,000.00, or up to twice the amount of the benefit derived from the breach where that benefit can be determined, or up to 10% of the overall annual turnover in the previous business year; (ii) revocation of permission to carry out business (if applicable); (iii) ban from performing management duties. For breach of the duty to register as a virtual and fiat currency exchange service provider or as a provider of custodian valet, the potential penalty is a fine of up to EUR 120,000.00.

10. Who are the relevant enforcement authorities in Slovenia and what are their contact details?

Office of the Republic of Slovenia for the Prevention of Money Laundering

Cankarjeva ulica 5

1000 Ljubljana

Slovenia

mf.uppd@gov.si

www.gov.si/en/state-authorities/bodies-within-ministries/office-for-money-laundering-prevention/

T: +386 142 541 89