Estonia’s Money Laundering Detection Efforts Under Scrutiny: Country Scores High on Technical Requirements
Estonia has recently undergone an assessment of its anti-money laundering (AML) and combating the financing of terrorism (CFT) measures, with a strong showing in several key areas. The Mutual Evaluation Report 2022, released by the Financial Action Task Force (FATF), highlights Estonia’s progress in implementing technical requirements to prevent money laundering and terrorist financing.
Key Findings
- Estonia achieved high ratings in assessing risk and applying a risk-based approach, national cooperation and coordination, laws and regulations for confiscation and provisional measures, targeted financial sanctions related to terrorism and terrorist financing, and customer due diligence.
- The country was found to be partially compliant with certain recommendations, including the regulation and supervision of financial institutions, designated non-financial businesses and professions (DNFBPs), and cash couriers. Estonia also received a partially compliant rating for its efforts in combating the proliferation of weapons of mass destruction.
Strengthened Framework
Estonia’s anti-money laundering and CFT framework has been strengthened through: * The establishment of a robust financial intelligence unit * Improved cooperation with law enforcement agencies * Measures to enhance transparency and beneficial ownership requirements for legal persons and arrangements
Areas for Improvement
While Estonia has made significant progress in implementing AML/CFT measures, there are still areas where improvement is needed. Specifically: * Strengthening regulation and supervision of financial institutions and DNFBPs * Enhancing efforts to combat the financing of terrorism and terrorist financing
Conclusion
Estonia’s strong showing in the Mutual Evaluation Report 2022 reflects the country’s commitment to preventing money laundering and terrorist financing. However, further efforts are needed to ensure that Estonia remains compliant with international standards and continues to effectively combat these threats.