Financial Crime World

Estonia Adheres to Revised FATF Guidelines to Combat Money Laundering and Terrorist Financing

The Financial Action Task Force (FATF), a leading international policymaking body, has issued revised guidelines to combat money laundering and terrorist financing. The revised recommendations aim to strengthen international standards against financial crimes, which Estonia has pledged to adhere to.

About the FATF

Formed in 1989, the FATF is responsible for setting international standards to prevent money laundering and terrorist financing. With 32 member countries and two regional organizations, the FATF has developed:

  • 40 Recommendations to combat money laundering
  • 9 Special Recommendations to fight terrorist financing

Revised Guidelines

The revised guidelines, issued on February 16, 2012, introduce significant changes in key areas, including:

  • Risk-based approach implementation: A more targeted approach to combating financial crimes.
  • Beneficial ownership information sharing: Improved transparency and cooperation among countries.
  • Tax offenses as predicate offenses for money laundering: Strengthening the link between tax evasion and money laundering.
  • Enhanced powers of law enforcement agencies: Expanding authorities to combat financial crimes.

The revised standards also broaden the definition of politically exposed persons (PEPs) to include domestic PEPs and those from international organizations.

Estonia’s Commitment

Estonia has committed to implementing these revised guidelines to ensure that its financial system remains robust against money laundering and terrorist financing. The country’s Financial Intelligence Unit (FIU) will work closely with:

  • Law enforcement agencies: Enhancing cooperation and information sharing.
  • Financial institutions: Strengthening anti-money laundering and counter-terrorist financing frameworks.

FATF Recommendations

The FATF recommendations cover a comprehensive set of measures to prevent:

  • Money laundering
  • Terrorist financing
  • Financing of proliferation

These measures include:

  • Preventive measures for financial institutions and businesses
  • Transparency on legal persons’ ownership
  • Establishment of competent authorities
  • International cooperation arrangements

Conclusion

Estonia’s adherence to these revised guidelines demonstrates its commitment to upholding international standards against financial crimes. The country’s efforts will contribute to a safer and more secure financial system for both domestic and global stakeholders.