Financial Crime World

ESTONIA ESTABLISHES COMMITTEE TO Combat Money Laundering and Terrorist Financing

Introduction

The Estonian government has established an Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Committee to oversee the country’s efforts to prevent illegal activities such as money laundering and terrorist financing.

Composition of the Committee

The committee will consist of representatives from various government agencies, including:

  • Ministry of Finance
  • Financial Intelligence Unit
  • Eesti Pank
  • Estonian Financial Supervision Authority
  • Representatives from obliged entities (banks and financial institutions) to provide expert advice.

Responsibilities of the Committee

The AML/CFT Committee will be responsible for:

Developing Policies

Developing policies to prevent money laundering and terrorist financing.

Proposing Legislative Amendments

Proposing legislative amendments to ensure compliance with international standards.

Promoting National Cooperation

Promoting national cooperation in AML/CFT efforts.

Obliged Entities’ Responsibilities

According to Section 13 of the Act on Combating Money Laundering and Terrorist Financing, obliged entities must:

  • Conduct a risk assessment to identify, assess, and analyze potential risks related to money laundering and terrorist financing.
  • Establish fields of lower and higher risk.
  • Determine their risk appetite.
  • Develop a risk management model to mitigate identified risks.

Market Participants Advisory Committee

The AML/CFT Committee will establish a Market Participants Advisory Committee to advise the government on its activities. This committee will provide valuable insights from the industry and help shape policies and regulations.

Working Groups

Ad hoc working groups and standing working groups may be established to perform specific tasks related to AML/CFT, such as:

  • Risk assessment
  • Customer due diligence
  • Reporting suspicious transactions

Oversight

The Ministry of Finance will oversee the work of the committee to ensure effective implementation of AML/CFT policies and regulations.

Objectives

Estonia’s efforts to combat money laundering and terrorist financing are aimed at protecting the country’s financial system and maintaining its reputation as a stable and secure jurisdiction for international business.