AML/CFT

What Is AML/CFT?

AML/CFT stands for Anti-Money Laundering and Countering the Financing of Terrorism. Together, these frameworks form a global system of laws, controls, and supervisory measures designed to prevent criminals from using the financial system to hide illicit proceeds or fund terrorist activities.

AML/CFT requirements apply to a wide range of organisations — including banks, fintech companies, virtual asset service providers (VASPs), payment institutions, auditors, notaries, accountants, and many designated non-financial businesses and professions (DNFBPs).

At the core of every AML/CFT system are two goals:

  • Preventing the misuse of financial services for criminal purposes, and

  • Protecting the integrity and stability of the financial system.

Why AML/CFT Matters

Money laundering and terrorist financing threaten economic stability, national security, and the integrity of financial markets. Effective AML/CFT frameworks:

  • Reduce the risk of fraud, corruption, tax evasion, cybercrime, and organised crime

  • Enable early detection of illicit activities

  • Protect businesses from regulatory breaches and reputational damage

  • Support global efforts to combat terrorism and proliferation financing

For obliged entities, compliance is both a legal requirement and a critical part of sound risk management.

The Regulatory Landscape

European Union (EU)

The EU is implementing a new, unified AML framework, known as the EU AML Package, which includes:

  • AMLR — the regulation setting uniform AML/CFT requirements will be directly applicable in all EU Member States from 1st of July 2027 (Regulation (EU) 2024/1624).

  • AMLA — the new EU Anti-Money Laundering Authority was established on 26th of June 2024 and will commence its operations on 1st of January 2028. 

  • AMLD6 — directive defining national supervision and FIU requirements 

  • TFR — regulation on fund transfers and crypto-asset traceability (Regulation (EU) 2023/1113 entered into force 30.12.2024)

This framework aims to create consistent, harmonised rules across all Member States.

Slovenia

In Slovenia, AML/CFT obligations are set out in ZPPDFT-2, which regulates:

  • Customer identification and verification

  • Risk-based CDD and EDD measures

  • Ongoing monitoring of business relationships

  • Identification and reporting of suspicious transactions

  • Financial sanctions screening

  • Record-keeping and internal controls

ZPPDFT-2 implements EU standards and FATF Recommendations.

International Standards

Globally, the FATF (Financial Action Task Force) sets the benchmark for AML/CFT practices. Its 40 Recommendations serve as the foundation for legislation and supervision in over 200 jurisdictions.