Estonian Government Establishes Committee to Combat Money Laundering and Terrorist Financing

Strengthening Efforts Against Financial Crimes

The Estonian government has taken another significant step in its efforts to combat money laundering and terrorist financing by establishing an Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Committee.

Committee Structure and Responsibilities

The committee consists of representatives from various bodies and authorities, including:

• Ministry of Finance
• Financial Intelligence Unit
• Eesti Pank
• Estonian Financial Supervision Authority
• Other relevant entities and authorities

The committee’s primary functions include:

• Developing policies to combat money laundering and terrorist financing
• Making legislative amendment proposals as needed
• Organizing and checking the implementation of the action plan
• Pursuing national cooperation in AML/CFT and countering proliferation

Collaboration with Stakeholders

To effectively implement its objectives, the committee has established a sub-committee known as the Market Participants Advisory Committee, comprising representatives from obliged entities. This sub-committee will advise the government on its functions.

Additionally, ad-hoc working groups and standing working groups may be set up for specific tasks.

Risk Assessment and Management

The committee will work closely with financial institutions and other stakeholders to identify, assess, and analyze risks related to money laundering and terrorist financing. This includes:

• Preparing a risk assessment
• Establishing fields of lower and higher risk
• Determining risk appetite
• Developing a risk management model

Proportionate Approach

The Ministry of Finance will ensure that the risk assessment and risk management model are proportionate to the nature, size, and complexity of the economic and professional activities of the obliged entity.

Commitment to Combating Financial Crimes

According to the government, the establishment of the AML/CFT Committee is a key step in Estonia’s efforts to combat money laundering and terrorist financing. “We are committed to ensuring that our financial system is secure and transparent, and this committee will play a crucial role in achieving that goal,” said a government spokesperson.

The Estonian government has been working to strengthen its AML/CFT framework in recent years, including implementing stricter regulations on financial institutions and increasing cooperation with international partners.