Financial Crime World

ESTONIA TIGHTENS SANCTIONS REGIME: NEW LAWS AIM TO COMBAT FINANCIAL CRIMES

In a bid to combat financial crimes and comply with international sanctions, Estonia has introduced new laws aimed at tightening its sanctions regime. The laws came into effect on [date] and introduce several key measures designed to prevent the misuse of Estonian companies and institutions for illicit activities.

Key Measures

  • Creation of a register of non-profit organizations and foundations
  • Stricter rules for the registration of ships and aircraft
  • Refusal by registrar to make an entry that violates financial sanctions
  • Designation by registrar of person to organize implementation of financial sanctions
  • Notification by registrar to Financial Intelligence Unit (FIU) of transactions or acts suspected of violating international sanctions

Enhanced Powers for FIU

The FIU has been granted new powers to issue precepts to individuals and companies suspected of violating financial sanctions, including the power to: + Suspend transactions + Require measures necessary for the application of sanctions

Penalty Payments

Failure to comply with precepts issued by the FIU will result in penalty payments. The maximum rate of penalty payment is set at up to €5 million for natural persons and up to 10% of a legal person’s total annual turnover.

Strengthening Estonia’s Position

The new laws aim to strengthen Estonia’s position as a responsible member of the international community, demonstrating its commitment to combating financial crimes and complying with international sanctions.

REACTION FROM THE FINANCIAL INDUSTRY

The new laws have been welcomed by the financial industry, which has long called for tougher measures to combat financial crimes.

“These new laws demonstrate Estonia’s commitment to combating financial crimes and complying with international sanctions,” said [name], CEO of [bank/financial institution]. “We believe that they will help to strengthen the integrity of our financial system and protect our customers from illicit activities.”

NEXT STEPS

The Estonian government has announced plans to review and refine the new laws in the coming months, with a view to further strengthening Estonia’s sanctions regime.

“We are committed to staying ahead of the curve when it comes to combating financial crimes,” said [name], Minister of Finance. “We believe that these new laws will play an important role in helping us to achieve this goal.”