Financial Inclusion and Financial Crime in Norway: A Country Under Scrutiny
Norway, a Scandinavian country known for its natural resources and prosperous economy, has become a prime target for financial criminals seeking to exploit its financial system. The country’s recent experiences with high-profile financial scandals have brought attention to its anti-money laundering (AML) and counter-terrorism financing (CFT) regulatory requirements.
AML Compliance Violations: A Record-Breaking Fine
In 2020, DNB ASA, Norway’s largest financial services group, was slapped with a record-breaking fine of NOK 400 million (approximately $48.1 million) for systematic AML compliance violations. This incident highlights the importance of businesses operating in Norway being familiar with its AML/CFT landscape and implementing suitable regulatory compliance programs.
Combating Financial Crime: Finanstilsynet at the Forefront
At the forefront of combating financial crime is Finanstilsynet, Norway’s primary AML regulator. Established in 1986, Finanstilsynet oversees banks and financial institutions, including insurance companies, credit companies, pension funds, accountants, and real estate agencies. Its duties include developing and implementing financial legislation, conducting on-site compliance inspections, and ensuring that supervised institutions comply with anti-money laundering legislation.
Norway’s AML/CFT Legislation: The Anti-Money Laundering Act
Norway’s main AML/CFT law is the Act Relating to Measures to Combat Money Laundering and Terrorist Financing, also known as the Anti-Money Laundering Act. Passed in 2018, the act imposes risk-based record-keeping and reporting regulations on financial institutions, including customer due diligence (CDD) and ultimate beneficial ownership (UBO) checks.
Global Cooperation: Fighting Money Laundering Across Borders
As a signatory to the EU’s Memorandum of Understanding on Cooperation, Finanstilsynet works with other national supervisory authorities across the European Economic Area (EEA) and regulatory bodies worldwide in the global fight against money laundering.
Recent AML Initiatives in Norway
Recent AML initiatives in Norway include the implementation of the EU’s landmark Markets in Crypto Assets (MiCA) regulation and the Transfer of Funds Regulation (TFR), which will extend AML/CFT regulations to virtual asset service providers. Both regulations are set to come into effect in 2024.
Compliance Requirements: What You Need to Know
To comply with AML regulations in Norway, financial institutions must:
- Conduct risk assessments to establish customer risk profiles
- Deploy proportionate compliance responses based on the level of risk
- Conduct customer due diligence
- Screen transactions against sanctions and watchlists
- Perform adverse media screening
Effective Compliance Solutions: Ripjar’s Labyrinth Screening Platform
In practice, firms should screen their customers against adverse media sources on an ongoing basis using software with multi-language search capabilities that can deliver real-time risk data. Ripjar’s Labyrinth Screening platform, powered by next-generation machine learning technology, enables real-time searches of thousands of global media sources, including news articles and sanctions lists, in over 20 languages.
Stay Ahead of Norway’s Evolving AML Regulations
To stay ahead of Norway’s evolving AML regulations and global risk landscape, it is critical to implement a screening solution capable of capturing vast amounts of risk data while minimizing false positive alerts. For more information on how Ripjar can support your AML compliance in Norway, contact us today.