Financial Crime World

Estonia Takes Measures to Prevent Money Laundering

Estonia has taken several measures to prevent and identify financial crimes, including money laundering and terrorist financing. This effort is a collaborative endeavor between various organizations, with the Ministry of Finance playing a key role in setting policy and legislation.

Key Players in Preventing Money Laundering

  • Ministry of Finance: Responsible for general policy, legislation, and coordination of activities related to preventing financial crimes.
  • Estonian Financial Intelligence Unit (FIU): Analyzes and verifies information about suspected money laundering or terrorist financing. The FIU is an independent unit of the Estonian Police and Border Guard Board.

Measures Taken by Key Players

  • FIU: Preserves property where necessary and immediately forwards materials to competent authorities upon detection of elements of a criminal offense.
  • Prosecutor’s Office, Security Police, Tax and Customs Board, and courts in Estonia: Actively work to identify criminals and establish legal liabilities.
  • Financial Supervision Authority: Exercises supervision over the financial sector to ensure stability, reliability, and transparency.

Collaborative Efforts

  • Governmental Committee: Established under the chairmanship of the Minister of Finance, comprising representatives from ministries, Tax and Customs Board, Prosecutor’s Office, police, Bank of Estonia, and Financial Supervision Authority.
  • Advisory Committee of Market Participants: Channels information, enhances communications, and listens to proposals from market participants to raise awareness among entrepreneurs and involve them in developing legislation.

Anti-Money Laundering and Terrorist Financing Prevention Act

The act, which took effect on January 28, 2008, has increased the number of obligated persons who must inform the Financial Intelligence Unit about large cash transactions. These include: + Banks + Entrepreneurs providing financial services + Organizers of games of chance + Those carrying out or acting as intermediaries in real estate transactions

In some cases, notaries, lawyers, bailiffs, and trustees in bankruptcy may also be required to follow the requirements of the act.

Obligations of Obligated Persons

  • Inform the Financial Intelligence Unit about every transaction where a cash payment of at least 32,000 EUR or an equal amount in another currency is made.
  • Credit institutions have this notification obligation only if providing currency exchange services.

Registration Requirements for Entrepreneurs and Financial Institutions

  • Entrepreneurs must register in the Register of Economic Activities.
  • Financial institutions not subject to supervision by the Financial Supervision Authority must also register themselves.
  • Entrepreneurs providing services like SMS-loans and other types of loans, pawnbrokers, and currency exchange offices must make registration to provide their services in Estonia.

Further Information

For more information on preventing money laundering, visit the website of the Ministry of Finance.