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Norway's AML/CFT Measures: Frontline Defense

· 2 min read
Robert Greenberg
Compliance Officer

FATF's Assessment of Norway's AML/CFT Measures 🔎​

The Financial Action Task Force (FATF) has published its third mutual evaluation report on Norway's anti-money laundering and countering the financing of terrorism (AML/CFT) measures. In this article, we discuss the key findings regarding Norway's financial institutions and their role in crime prevention.

Norway's Robust Financial Sector and Strict Regulations 💵​

Norway, with its strong financial sector and stringent regulatory framework, has witnessed various profit-driven crimes, primarily drug-related and economic offenses, in recent times. In response, Norwegian authorities have taken the following steps:

  1. Improving the effectiveness of AML/CFT measures
  2. Enhancing international cooperation
  3. Complying with the European Union Money Laundering Directive
  4. Training specialized economic crimes units

Components of Norway's Financial Sector 💰​

  • Savings banks, commercial banks, finance companies, mortgage companies, life and non-life insurance companies, e-money institutions, investment firms, security funds management companies, and branches of foreign financial institutions (All these institutions are supervised by Kredittilsynet – The Financial Supervisory Authority of Norway)
  • Foreign exchange offices and money/value transfer service (MVTS) providers (Not formally permitted to operate in Norway)

Norwegian Legislation 📜​

  • Money laundering is punishable by up to 10 years' imprisonment under the Norwegian Penal Code
  • Terrorism financing is an autonomous offense

Extensive Powers to Identify and Seize Assets 🔍​

Norwegian law provides ample powers for identifying and seizing assets, along with confiscation of proceeds from criminal offenses. Some recommendations include:

  1. Extending money laundering offenses to self-laundering situations
  2. Increasing the use of serious money laundering charges

Confiscation Orders and Adherence to UNSC Resolutions 🔓​

In 2003, over 900 confiscation orders worth approximately NOK 140 million (€17 million) were issued. Norway is encouraged to:

  1. Provide clearer guidance to institutions and persons holding targeted assets
  2. Establish effective monitoring and compliance systems

Enhancing the Role and Capabilities of the Norwegian Money Laundering Unit (MLU) 🚔​

  1. Allocate separate AML/CFT resources and expertise
  2. Ensure a more focused and effective approach towards identifying and reporting suspicious transactions

Regular Updates and Collaboration between Agencies and Financial Institutions 💬​

Effective communication between government agencies and financial institutions is crucial in maintaining a strong defense against financial crimes.