Slovenia -- Travel Rule Implementation Regulatory Overview

Slovenia, as a member state of the European Union, implements the FATF Travel Rule for crypto assets primarily through the EU's legislative framework. This means that while Slovenia has its national AML/CTF law, the specific rules for crypto transfers are largely dictated by EU regulations which apply directly.

Here's a breakdown of the status in Slovenia:

1. Whether Adopted: Yes, the FATF Travel Rule for crypto assets has been adopted in Slovenia through the transposition of the EU's 5th Anti-Money Laundering Directive (AMLD) into national law and, most significantly, through the direct applicability of the EU's Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets (often referred to as the revised Transfer of Funds Regulation or TFR).

• National Legislation: Slovenia's primary AML/CTF law is the Zakon o preprečevanju pranja denarja in financiranja terorizma (ZPPDFT-2) (Prevention of Money Laundering and Terrorist Financing Act). This act defines virtual currencies and service providers and imposes general AML/CTF obligations.

  • URL: ZPPDFT-2 (Official Gazette of the Republic of Slovenia - Uradni list RS) (Note: You may need to navigate the Slovenian official gazette for the most up-to-date consolidated text, as laws are frequently amended.)

• EU Regulation (Directly Applicable): The crucial piece of legislation that specifically codifies the Travel Rule for crypto assets across the EU (including Slovenia) is:

  • Regulation (EU) 2023/1113 of the European Parliament and of the Council of 31 May 2023 on information accompanying transfers of funds and certain crypto-assets and amending Regulation (EU) 2015/847. This regulation directly applies in Slovenia without the need for national transposition for its core provisions.
  • URL: Regulation (EU) 2023/1113 on EUR-Lex

2. Effective Date:

• Initial obligations for VASPs under ZPPDFT-2 (transposing 5AMLD) have been in effect since around late 2019 / early 2020.
• However, the specific and comprehensive implementation of the FATF Travel Rule for crypto assets, as defined by Regulation (EU) 2023/1113, becomes applicable much later: 30 December 2024. This is the key date for the full Travel Rule requirements for crypto assets.

3. Threshold Amounts: Regulation (EU) 2023/1113 establishes different rules for transfers depending on the recipient:

• Between Crypto-Asset Service Providers (CASPs): There is no de minimis threshold for transfers between CASPs. This means all transfers, regardless of amount, must be accompanied by the required information.
• To or From a Self-Hosted Wallet (Unhosted Wallet):
  • For transfers to or from a self-hosted wallet below €1,000, CASPs are required to collect and verify the identity of their customer (the originator or beneficiary) and assess whether the transfer is intended for criminal activities, but are not required to verify the owner of the self-hosted wallet unless they suspect illicit activity.
  • For transfers to or from a self-hosted wallet equal to or above €1,000, the CASP facilitating the transfer for its customer must collect and verify the identity of the customer and, where technically feasible, also verify that the self-hosted wallet is owned or controlled by that customer.

4. Which VASPs Are Covered: The new EU Regulation (2023/1113) uses the term "Crypto-Asset Service Provider" (CASP), which aligns with the Markets in Crypto-Assets (MiCA) Regulation. This broad definition covers a wide range of entities that provide services related to crypto-assets, including:

• Crypto-asset exchanges (fiat-to-crypto, crypto-to-crypto)
• Providers of transfer services for crypto-assets
• Custody wallet providers
• Other entities performing services for or on behalf of another natural or legal person that involves crypto-assets.

Slovenia's ZPPDFT-2 also defines "providers of services related to virtual currencies" (which includes exchanges, custody providers, etc.), bringing them under AML/CTF supervision.

5. Technical Implementation Requirements: Regulation (EU) 2023/1113 mandates the following:

• Originator Information: CASPs must obtain and hold the following information on the originator of a crypto-asset transfer:
  • Name of the originator
  • Originator's distributed ledger address (or equivalent)
  • Originator's crypto-asset account number (if applicable)
  • Originator's physical address, national identity number, or customer identification number (where issued), or date and place of birth.
• Beneficiary Information: CASPs must obtain and hold the following information on the beneficiary of a crypto-asset transfer:
  • Name of the beneficiary
  • Beneficiary's distributed ledger address (or equivalent)
  • Beneficiary's crypto-asset account number (if applicable)
• Concurrent Transfer: This information must be transmitted by the originating CASP to the beneficiary CASP concurrently with the crypto-asset transfer, and in a secure manner.
• Data Handling: CASPs must have policies and procedures in place for the collection, retention, and secure transfer of this data. This generally requires integration with Travel Rule solution providers (e.g., TRISA, TRAVEL, Sygna, VerifyVASP) or direct secure API connections between CASPs.

6. Penalties for Non-Compliance: Slovenia's ZPPDFT-2 (Prevention of Money Laundering and Terrorist Financing Act) outlines the penalties for breaches of AML/CTF obligations. These typically include:

• Administrative fines: Substantial monetary penalties can be imposed on legal entities and responsible persons within them for various violations, including failure to comply with data collection, verification, record-keeping, and reporting requirements.
• Revocation of licenses/registrations: Repeated or severe non-compliance can lead to the revocation of a VASP's operating license or removal from the registry, effectively preventing them from operating in Slovenia.
• Other supervisory measures: The supervisory authority (primarily the Financial Administration of the Republic of Slovenia (FURS) and potentially the Bank of Slovenia for certain financial entities) can impose other corrective measures and orders.

The specific amounts of fines are stipulated in ZPPDFT-2, typically ranging from thousands to hundreds of thousands of Euros, depending on the severity of the offense and the size of the entity.

In summary, Slovenia is fully aligned with the EU's approach to the FATF Travel Rule for crypto assets, with the comprehensive requirements becoming mandatory from December 30, 2024, via the directly applicable EU Regulation 2023/1113. Slovenian authorities will enforce these requirements through existing national AML/CTF legislation and supervisory powers.