Financial Crime World

Estonia’s Relentless Crusade Against Financial Crimes: A Collaborative Effort

In the heart of Northern Europe, Estonia stands out as a beacon of financial integrity and crime prevention. Several organizations collaborate to safeguard the region from money laundering and terrorist financing.

Key Players in Estonia’s Financial Crimes Fight

Ministry of Finance

  • Dictates general policy
  • Legislation
  • Oversees all related activities

Estonian Financial Intelligence Unit (FIU)

  • Analysis and verification of suspicious financial activities
  • Necessary preservation measures
  • Reporting potential criminal offenses to competent authorities

Prosecutor’s Office, Security Police, Tax and Customs Board, and Courts

  • Identify criminals
  • Hold them accountable

Financial Supervision Authority

  • Maintains the stability, reliability, and transparency of Estonia’s financial sector

Enhancing Collaboration

Governmental committee for the coordination of money laundering prevention

  • Chaired by the Minister of Finance
  • Members include representatives from ministries, Tax and Customs Board, Prosecutor’s Office, police, Bank of Estonia, and Financial Supervision Authority
  • Meeting frequency: at least once every four months

Advisory Committee of Market Participants

  • Gather valuable information
  • Enhance communications concerning market situations
  • Raise awareness among entrepreneurs and contribute to legislation development
  • Members consist of representatives from various entrepreneur and obligated person associations

Obligated Persons and Reporting Requirements

With the increasing importance of financial transparency, the involvement of Estonia’s law-abiding citizens is crucial in the fight against financial crimes. The following groups are considered obligated persons:

  • Banks
  • Entrepreneurs providing financial services
  • Organizers of games of chance
  • Individuals or organizations carrying out transactions involving real estate, valuable items, accounting or consulting services, auditing, or acting as intermediaries
  • Traders who receive cash payments of at least €15,000

Notaries, lawyers, bailiffs, trustees in bankruptcy, and other professionals may also need to adhere to the Money Laundering and Terrorist Financing Prevention Act’s requirements.

Obligated persons must report the following transactions to the Financial Intelligence Unit:

  • Cash payment of at least €32,000 or equivalent amount in another currency – for all obligated persons except credit institutions
  • Cash payment of any amount or equivalent amount in another currency involving currency exchange services – for credit institutions

Establishing Operations in Estonia

Estonian entrepreneurs seeking to operate in Estonia and non-supervised financial institutions must register in the Register of Economic Activities. Additionally, providers of services like SMS-loans, pawnbrokers, and currency exchange offices are required to do so.

For further details, please visit the Ministry of Finance website.

Estonia’s unwavering commitment to combatting financial crimes strengthens its financial sector and maintains its reputation as a bastion of integrity in Europe.