Financial Crime World

Medium Low Risk Found in Estonia’s Financial Sector

A recent assessment by the Estonian financial authorities has revealed a medium-low risk of money laundering and terrorist financing in various sectors of the country’s economy.

Assessment Findings

The assessment analyzed six modules: Savings and Loan Associations, Other Financial Service Providers (leasing and loans), Collateral and Guarantee Transactions, Designated Non-Financial Businesses and Professions (DNFBPs), Traders (precious stones and gold), and Traders (cars and boats). The overall risk level for these sectors was found to be medium-low, with a rating of 0.20 on a scale of 0 to 1.

Key Sectors

Savings and Loan Associations

  • Vulnerability rating: Medium-Low (ML)
  • Recommendations:
    • Training
    • Supervision
    • Changes in legislation

Other Financial Service Providers (leasing and loans)

  • Vulnerability rating: Medium-Low (ML)

Collateral and Guarantee Transactions

  • Vulnerability rating: Medium-Low (ML)
  • Recommendations:
    • Training
    • Supervision
    • Changes in legislation

Designated Non-Financial Businesses and Professions (DNFBPs)

Casinos and Remote Gambling

  • Vulnerability rating: Medium-Low (ML)
  • Recommendations:
    • Training
    • Supervision
    • Changes in legislation

Real Estate Agencies and Rental Market

  • Vulnerability rating: Medium-Low (ML)
  • Recommendations:
    • Training
    • Supervision
    • Changes in legislation

Traders

Precious Stones and Gold

  • Vulnerability rating: Medium (M)

Cars and Boats

  • Vulnerability rating: Medium-Low (ML)

Recommendations

To mitigate the identified risks, the authorities have recommended implementing measures such as:

  • Training for financial institutions and DNFBPs on anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations.
  • Enhanced supervision by regulatory bodies to ensure compliance with AML/CFT regulations.
  • Changes in legislation to strengthen AML/CFT frameworks and improve cooperation between authorities.

By implementing these measures, Estonia aims to reduce its risk level and maintain a robust financial system that is resistant to money laundering and terrorist financing.