Financial Crime World

Estonia Implements New Anti-Money Laundering and Countering Financing of Terrorism Measures

Strengthening the Fight Against Illicit Financial Transactions

The Estonian government has announced new measures to bolster its anti-money laundering (AML) and countering financing of terrorism (CFT) framework. The initiatives aim to enhance the country’s ability to detect and prevent illicit financial transactions.

Task Force Established to Implement AML/CFT Plan

A special task force, known as the AML/CFT Committee, has been set up to oversee the implementation of the new measures. The committee will be responsible for developing policies and making legislative proposals to the relevant ministers and authorities.

The AML/CFT Committee consists of senior officials from various government agencies, including:

  • Ministry of Finance
  • Financial Intelligence Unit
  • Eesti Pank
  • Estonian Financial Supervision Authority
  • Other relevant bodies

Industry Experts to Provide Input

To ensure that industry experts are involved in the decision-making process, a Market Participants Advisory Committee has been established. This committee will provide advice to the government on issues related to AML/CFT.

Additionally, ad hoc working groups and standing working groups may be formed to address specific issues and tasks.

Risk Assessment Required for Obligated Entities

Obligated entities, including:

  • Banks
  • Financial institutions
  • Other businesses

must conduct a risk assessment to identify potential money laundering and terrorist financing risks. The assessment will help them establish fields of lower and higher risk, as well as a risk management model to mitigate identified risks.

The risk assessment must be proportionate to the nature, size, and complexity of the obligated entity’s activities.

Risk Management System Established

To manage these risks, obligated entities must establish rules of procedure and internal control rules. These rules will outline procedures for applying due diligence measures, identifying and managing customer risks, and determining customer risk profiles.

The new measures are designed to strengthen Estonia’s AML/CFT framework and enhance its ability to combat money laundering and terrorist financing.