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Types of Financial Sanctions in Estonia: A Comprehensive Guide

Estonia, like many other countries, has implemented various financial sanctions to prevent money laundering and terrorist financing. In this article, we will explore the different types of financial sanctions in Estonia and how they are enforced.

Advisory Guidelines by Finantsinspektsioon

Finantsinspektsioon, the Estonian Financial Supervision Authority, has issued several advisory guidelines to help credit and financial institutions comply with anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations. These guidelines provide detailed instructions on how to identify suspicious transactions, conduct customer due diligence, and implement effective internal controls.

  • The “Application of International Financial Sanctions in Credit and Financial Institutions” guideline outlines the steps financial institutions must take to comply with international sanctions.
  • The “Organisational Solutions and Preventive Measures for Credit and Financial Institutions to Take Against Money Laundering and Terrorist Financing” guideline provides guidance on how to prevent money laundering and terrorist financing.

EBA Guidelines Adopted as Advisory Guidelines by Finantsinspektsioon

The European Banking Authority (EBA) has also issued several guidelines that have been adopted by Finantsinspektsioon. These guidelines provide detailed instructions on how to implement effective AML/CFT measures, including customer due diligence and risk assessment.

  • The “Guidelines on Customer Due Diligence and the Factors Credit and Financial Institutions Should Consider When Assessing the Money Laundering and Terrorist Financing Risk Associated with Individual Business Relationships and Occasional Transactions” guideline.
  • The “Guidelines on Policies and Procedures in Relation to Compliance Management and the Role and Responsibilities of the AML/CFT Compliance Officer” guideline.

Estonian Legislation

Estonia has also implemented its own legislation to combat money laundering and terrorist financing. Some notable examples include:

  • The Money Laundering and Terrorist Financing Prevention Act, which sets out the legal framework for preventing money laundering and terrorist financing.
  • The International Sanctions Act, which allows for the implementation of international sanctions.

European Union Legislation

The European Union has also implemented several pieces of legislation aimed at combating money laundering and terrorist financing. Some notable examples include:

  • The 6th Anti-Money Laundering Directive, which sets out the minimum standards for AML/CFT measures.
  • Commission Delegated Regulation (EU) 2019/758, which provides regulatory technical standards for credit and financial institutions.

Restrictive Measures and Sanctions

Estonia has also implemented restrictive measures and sanctions to prevent money laundering and terrorist financing. Some notable examples include:

  • The United Nations Security Council Consolidated List, which lists individuals and entities subject to sanctions.
  • The EU Sanctions Map, which provides information on EU sanctions.
  • OFAC’s list of persons subject to sanctions.

In conclusion, Estonia has implemented a range of financial sanctions to prevent money laundering and terrorist financing. These sanctions are enforced through a combination of advisory guidelines, legislation, and international cooperation. Credit and financial institutions must comply with these sanctions to avoid legal consequences.