Estonia Moves to Mitigate Money Laundering and Terrorist Financing Risks

The Estonian government has launched a comprehensive action plan to mitigate the risks of money laundering and terrorist financing, following the results of a national risk assessment. The plan aims to identify, assess, and analyze the risks related to these activities, and implement measures to prevent them.

Action Plan Overview

According to the plan, the Ministry of Finance will be responsible for organizing the work of the AML/CFT Committee, which consists of representatives from various authorities, including:

• Financial Intelligence Unit
• Eesti Pank
• Estonian Financial Supervision Authority
• Other relevant bodies

The committee will also establish a Market Participants Advisory Committee, comprising representatives of obliged entities, to advise on the implementation of the plan.

Obliged Entities’ Responsibilities

Under the plan, obliged entities are required to:

• Prepare a risk assessment, taking into account various categories of risks, including:
  • Customers
  • Countries
  • Geographic areas
  • Products
  • Services
• Establish fields of higher and lower risk
• Determine their risk appetite
• Develop a risk management model to mitigate identified risks

In certain cases, the competent supervisory authority may decide that the preparation of a documented risk assessment is not mandatory for obliged entities where:

• Specific risks are clear and understandable
• The national risk assessment has established the risks

Risk Management Requirements

To ensure effective mitigation and management of risks, obliged entities must:

• Establish rules of procedure and internal control rules
• Include procedures for:
  • Applying due diligence measures regarding customers
  • Identifying and managing risks related to customers
  • Determining customer risk profiles

Implementation Timeline

The government has set time limits for the implementation of the plan, with authorities responsible for applying the risk-mitigating measures and carrying out risk-mitigating activities within a specified timeframe. The key milestones are:

• Obligated entities must prepare their risk assessments by [insert date]
• Supervisory authority will review and approve the risk assessments by [insert date]
• Obliged entities must implement their risk management models by [insert date]

Authorities Involved

The following authorities are involved in the implementation of the plan:

• Ministry of Finance
• Financial Intelligence Unit
• Eesti Pank
• Estonian Financial Supervision Authority
• Other relevant bodies

Public Officials Quoted

“We are committed to ensuring that Estonia remains a leader in the fight against money laundering and terrorist financing,” said [name], Minister of Finance. “This action plan is an important step towards achieving this goal, and we will work closely with all authorities involved to ensure its successful implementation.”