Financial Crime World

Financial Crime Definition Takes Center Stage in Estonia

Estonia has made significant strides in preventing financial crimes, with a range of organizations playing crucial roles in this effort. At the helm is the Ministry of Finance, responsible for shaping policy, legislation, and coordination efforts to combat money laundering and terrorist financing.

Key Organizations Involved

  • The Estonian Financial Intelligence Unit (FIU) operates independently within the Estonian Police and Border Guard Board, tasked with analyzing and verifying information related to suspected money laundering or terrorist financing activities.
  • Estonia’s law enforcement agencies, including the Prosecutor’s Office, Security Police, Tax and Customs Board, and courts, are actively working to identify criminals and establish appropriate legal liabilities.
  • The Financial Supervision Authority is also on high alert, responsible for ensuring stability, reliability, and transparency in the financial sector - a crucial aspect of preventing financial crimes.

Coordination Efforts

To coordinate efforts against money laundering and terrorist financing, the Governmental Committee was established, chaired by the Minister of Finance. This committee brings together representatives from various ministries, law enforcement agencies, and financial institutions to share information and enhance communication.

Raising Awareness

The Advisory Committee of Market Participants was created to engage with entrepreneurs and other obligated persons, raising awareness about the importance of preventing financial crimes. The committee is serviced by the Ministry of Finance and aims to promote a culture of compliance among market participants.

Public Role in Combating Financial Crimes

Estonian citizens also play a vital role in combating financial crimes. According to the Anti-Money Laundering and Terrorist Financing Prevention Act, which took effect in 2008, a wide range of obligated persons must report cash transactions exceeding certain thresholds to the Financial Intelligence Unit.

Obligated Persons

These include:

  • Banks
  • Entrepreneurs providing financial services
  • Organizers of games of chance
  • Real estate agents
  • Pawnbrokers
  • Auditors
  • Consultants

Additionally, notaries, lawyers, bailiffs, trustees in bankruptcy, and other professionals may be required to comply with certain requirements under the Money Laundering and Terrorist Financing Prevention Act. Entrepreneurs are also encouraged to ask for additional information when establishing contractual relationships or conducting transactions involving large sums of money.

Registration Requirements

To facilitate identification and reporting, obligated persons must register with the Register of Economic Activities. Financial institutions not subject to supervision by the Financial Supervision Authority must also register, as well as entrepreneurs providing services such as SMS-loans, pawnbroking, and currency exchange.

Further Information

For further information on Estonia’s efforts to prevent financial crimes, please visit the website of the Ministry of Finance.