Financial Crime World

Police and Financial Supervisors Crack Down on Illegal Activities

A joint effort by the police and Norway’s Financial Supervisory Authority (Finanstilsynet) has led to a significant increase in identifying and following up on unregistered market players, aimed at preventing illegal activities and ensuring compliance with anti-money laundering (AML) legislation.

Mutual Funds and Collective Investment Schemes

  • Finanstilsynet conducted a survey of 215 entities, including licensed fund management companies and registered alternative investment fund managers, to assess their AML compliance.
  • The results showed significant variations in compliance levels, with many firms lacking in risk assessments, procedures, and training.

Investment Firms

  • Several investment firms were inspected, highlighting shortcomings in their AML efforts.
  • One firm was fined for inadequate risk assessment, AML procedures, and customer due diligence measures.

Insurance

  • Insurers and insurance intermediaries were also subject to inspections, with many found to have cursory risk assessments and inadequate procedures.
  • Significant variations were identified in the scope and quality of training and maintenance of knowledge about AML compliance.

Estate Agency

  • Nine real estate agencies were inspected, with six thematic AML inspections conducted.
  • Four firms were fined for non-compliance, including two entities that received administrative fines of NOK 250,000 each.

Auditing

  • The financial supervisory authority inspected auditors’ AML compliance, finding a lack of awareness and understanding of roles in many cases.
  • Ten firms were fined between NOK 75,000 and NOK 400,000 for non-compliance.

External Accountants

  • Similarly, external accountants were found to be lacking in their AML efforts.
  • Nine firms received fines ranging from NOK 100,000 to NOK 400,000.

Domestic Cooperation

  • Finanstilsynet participates in the Contact Forum for combating money laundering and terrorist financing.
  • The authority will continue to cooperate with other authorities, including Økokrim, police districts, Norwegian Customs, the National Criminal Investigation Service, and the Norwegian Tax Administration, to achieve its goal of fighting crime.