Financial Crime World

Title: Estonia’s Unyielding Crusade Against Financial Crime

Preventing Money Laundering and Terrorist Financing in Estonia

Collaboration Between Government Agencies and Businesses

In Estonia, several organizations have united to combat financial crimes, focusing on preventing money laundering and terrorist financing. The Ministry of Finance leads the charge, setting policies, legislation, and coordinating activities under this umbrella.

The Role of the Estonian Financial Intelligence Unit (FIU)

A crucial player in this alliance is the Estonian Financial Intelligence Unit (FIU), an independent structural unit of the Estonian Police and Border Guard Board. The FIU:

  • Examines and authenticates information concerning suspected money laundering or terrorist financing
  • Executes measures to preserve property when required
  • Forwards materials to competent authorities upon detection of criminal offenses

Active Participation of Relevant Authorities

Key organizations involved in identifying criminals and imposing legal consequences include:

  • Prosecutor’s Office
  • Security Police
  • Tax and Customs Board
  • Courts
The Financial Supervision Authority’s Contribution

The Financial Supervision Authority plays a vital role by ensuring the stability, reliability, and transparency of Estonia’s financial sector. This added layer of protection is crucial, as financial crimes directly threaten this sector.

Governmental Committee for Money Laundering Prevention

Established to intensify efforts against money laundering and terrorist financing, the Governmental committee for the coordination of money laundering prevention:

  • Chaired by the Minister of Finance
  • Comprises members from various ministries, the Tax and Customs Board, The Prosecutor’s Office, police, Bank of Estonia, and the Financial Supervision Authority
  • Holds frequent meetings to drive efforts towards thwarting illicit activities

Advisory Committee of Market Participants

This committee aims to promote dialogue, information sharing, and communication among entrepreneurs. Its primary goal is to raise awareness about financial crimes and encourage legislative development.

The General Populace’s Role in Money Laundering Prevention

The general populace, including those employed in the financial sector, plays a crucial role in money laundering prevention. Obliged persons, such as:

  • Banks
  • Financial service providers
  • Real estate professionals
  • Auditors
  • Accounting and consulting services

must report large cash transactions to the Financial Intelligence Unit. Notaries, lawyers, bailiffs, trustees in bankruptcy, and other professionals occasionally fall under these requirements.

Registration Required for Service Providers

Entities such as:

  • Entrepreneurs
  • Financial institutions not subject to Financial Supervision Authority supervision
  • Loan providers
  • Currency exchange offices

must register in Estonia’s Register of Economic Activities to provide their services in the country.

For more information, please visit the Ministry of Finance’s website.