Financial Crime World

Credit Institutions Act: Important Changes Ahead

Estonia’s Financial Supervision Authority Announces Significant Changes

The Estonian Financial Supervision Authority (Finantsinspektsioon) has announced that significant changes are set to take effect in the coming months. Credit institutions from European Economic Area (EEA) countries planning to establish a branch or provide cross-border services in Estonia should be aware of these changes and take necessary steps accordingly.

Establishment of Branch

Credit institutions from EEA countries seeking to establish a branch in Estonia will need to submit an application, along with the following information and documents:

  • Action Plan: Detailed description of the proposed branch’s activities, organizational structure, and relationship with the parent credit institution.
  • Address and Manager Information: Address of the branch and details of the branch manager using the Suitability Assessment Form.
  • Parent Institution Information: Confirmation that the credit institution holds a valid authorization from its financial supervisory authority.
  • Financial Information: Size of the credit institution’s own funds, capital adequacy, and deposit guarantee system.

The processing deadline for establishing a branch is two months from receipt of the application and all necessary documents.

Cross-Border Services

Credit institutions intending to provide cross-border services in Estonia must notify Finantsinspektsioon of their intention and submit the following information and documents:

  • Country of Service: Name of the country where they intend to provide cross-border services.
  • Description of Services: Description of intended cross-border services, including a list of transactions and acts specified in § 6(1) of the Credit Institutions Act.

The notification must be submitted using the form provided for in Annex V to Commission Implementing Regulation (EU) No 926/2014. Documents and data should be submitted in Estonian, along with an official translation into one of the official languages of the Contracting State.

Finantsinspektsioon will make a decision on whether or not to send the information and documents to the financial supervisory authority of the Contracting State within one month from receipt. The credit institution may start providing cross-border services in Estonia after the data and documents have been sent to the respective financial supervisory authority.

Key Dates

  • [Date]: Deadline for submitting applications for establishing a branch.
  • [Date]: Deadline for submitting notifications for providing cross-border services.

Credit institutions are advised to review these changes carefully and take necessary steps to ensure compliance with Estonian regulations. Finantsinspektsioon is available to provide guidance and support throughout the process.

Contact Information

  • [Phone]