Estonia Tightens Grip on Terrorist Financing with New Laws
TALLINN, ESTONIA - Estonia has taken a significant step in combating terrorist financing and improving transparency in its financial system by approving amendments to its Money Laundering and Terrorist Financing Prevention Act.
Enhanced Definition of Money Laundering
The new laws enhance the definition of money laundering, making it easier to identify and prevent this criminal activity. The amendments also increase protection for whistleblowers, who play a crucial role in reporting suspicious financial activities.
Improved Transparency and Data Quality
- Work is underway to upgrade the quality of data on beneficial owners in Estonia’s Business Register.
- The law clarifies regulations governing cooperation and information exchange between financial institutions, making it easier for them to share data gathered during due diligence procedures.
- A legal framework is established for the development of a register of bank accounts.
Strengthening Anti-Money Laundering Regulations
The amendments improve the definition of beneficial owners and establish a list of politically exposed persons in Estonia, including:
- Ministers
- Members of parliament
- Heads of state institutions
- Board members of political parties
These individuals will be subject to increased requirements in preventing money laundering.
Protecting Whistleblowers and Ordinary Citizens
The law increases protection for whistleblowers and specifies the list of individuals who must consider anti-money laundering requirements in their activities. The goal is to strike a balance between combating financial crimes and ensuring that ordinary citizens and small businesses are not inadvertently caught up in the process.
Evaluating Effectiveness
Estonia will be subject to a new evaluation by Moneyval, an international organization monitoring anti-money laundering efforts, later this year. The assessment will examine how effectively Estonian institutions apply anti-money laundering regulations in practice and their capacity to prevent money laundering.
Quote from Finance Minister Martin Helme
“We are committed to ensuring that our country is not used for money laundering. These new laws will improve our capabilities in fighting this scourge and demonstrate our commitment to protecting the integrity of our financial system.”
The efficient application of these new laws is crucial, as Estonia must continue to improve its laws and regulations to stay ahead of the evolving threats posed by terrorist financing and money laundering.
“We must continue to improve our laws and regulations to stay ahead of the evolving threats posed by terrorist financing and money laundering,” said Finance Minister Martin Helme.