Estonia Takes Steps to Prevent Financial Crime: A Multi-Agency Approach
Estonia has implemented a robust system to combat financial crime, involving multiple organizations and agencies working together. At the heart of this effort is the Ministry of Finance, which sets general policy, legislation, and coordinates activities related to money laundering prevention.
Key Players in the Fight Against Financial Crime
- The Estonian Financial Intelligence Unit (FIU) analyzes and verifies information about suspected money laundering or terrorist financing cases.
- The Prosecutor’s Office, Security Police, Tax and Customs Board, and courts work together to identify criminals and establish legal liabilities when necessary.
- The Financial Supervision Authority ensures the stability, reliability, and transparency of Estonia’s financial sector, which is closely linked to money laundering prevention.
Governmental Committee for Combating Financial Crime
A governmental committee has been established under the chairmanship of the Minister of Finance to promote the fight against money laundering and terrorist financing. This committee brings together representatives from various ministries, law enforcement agencies, and regulatory bodies to ensure coordination and cooperation.
Advisory Committee of Market Participants
The Advisory Committee of Market Participants aims to raise awareness among entrepreneurs and involve them in developing legislation related to financial crime prevention. The committee is serviced by the Ministry of Finance and comprises representatives from different associations of entrepreneurs and obligated persons.
Role of Law-Abiding Citizens in Preventing Financial Crime
According to the Anti-Money Laundering and Terrorist Financing Prevention Act, a number of obligated persons are required to report cash transactions of large value to the Financial Intelligence Unit. These include: * Banks * Financial services providers * Game organizers * Real estate traders * Pawnbrokers * Auditors * Consultants
Additionally, entrepreneurs who make cash payments exceeding €15,000 or an equivalent amount in another currency must report such transactions. In some cases, notaries, lawyers, bailiffs, trustees in bankruptcy, and others may also be required to follow the requirements of the Money Laundering and Terrorist Financing Prevention Act.
Registration Requirements for Obligated Persons
Obligated persons must register themselves in the Register of Economic Activities, while financial institutions not subject to supervision by the Financial Supervision Authority also need to register. Entrepreneurs are allowed to request additional information when a contractual relationship is based on a long-term contract or a large transaction would be made.
Conclusion
Estonia’s multi-agency approach and robust regulations make it well-equipped to prevent financial crime and protect its financial system. For more information on Estonia’s efforts to combat financial crime, visit the website of the Ministry of Finance.