Estonia Introduces Money Laundering Prevention Act to Combat Financial Crimes

Tallinn, Estonia - In a bid to strengthen its anti-money laundering (AML) regime, Estonia has introduced the Money Laundering Prevention Act, which aims to prevent and combat financial crimes in the country.

Compliance with FATF Recommendations

According to the Financial Action Task Force (FATF) recommendations, Estonia’s Mutual Report 2022 reveals that it is largely compliant with the technical requirements of the AML/CFT standards. The report assesses the country’s implementation of the 40 Recommendations on Combating Money Laundering and Terrorist Financing.

Highlights of Estonia’s Efforts

The report highlights Estonia’s efforts in:

• Assessing risk and applying a risk-based approach to prevent money laundering
• National cooperation and coordination with other countries to combat financial crimes

Strengthened Laws and Regulations

Estonia has also strengthened its laws related to:

• Confiscation and provisional measures, making it easier to seize assets linked to money laundering activities
• Terrorist financing, targeted financial sanctions, and correspondent banking

Areas for Improvement

However, the report notes that Estonia still needs to improve its internal controls and foreign branches and subsidiaries, as well as its reporting of suspicious transactions and tipping-off and confidentiality requirements.

Conclusion

The Money Laundering Prevention Act is a significant step forward in Estonia’s efforts to combat financial crimes, and the country’s largely compliant status with FATF recommendations reflects its commitment to preventing money laundering and terrorist financing.