Estonia Takes Action to Mitigate Risks Identified in National Risk Assessment
The Estonian government has outlined an action plan to mitigate the risks identified in its national risk assessment on money laundering and terrorist financing. This plan aims to strengthen the country’s defenses against financial crimes and ensure compliance with international standards.
Authorities Take Lead Roles
The Ministry of Finance will play a key role in organizing and overseeing the implementation of the action plan, which includes designating authorities responsible for applying risk-mitigating measures and carrying out related activities. The Financial Intelligence Unit, Eesti Pank, Estonian Financial Supervision Authority, and other relevant bodies will also contribute to the effort.
Time Limits Set for Implementation
The action plan must be implemented within a specified timeframe, with deadlines set for each measure. This includes:
- Preparation of risk assessments by obliged entities
- Establishment of risk management models
- Implementation of internal control rules
AML/CTF Committee Established
To ensure effective coordination and oversight, an AML/CTF (Anti-Money Laundering/Combatting the Financing of Terrorism) Committee has been established. The committee will provide advice to the government on matters related to anti-money laundering and combating the financing of terrorism.
Market Participants Advisory Committee Created
The AML/CTF Committee has also established a Market Participants Advisory Committee, which will provide guidance on:
- Risk assessment
- Risk management
- Compliance with AML/CTF regulations
The committee will consist of representatives from obliged entities, including banks, insurance companies, and other financial institutions.
Risk Assessment and Management Obligations
Obliged entities must prepare a risk assessment to identify, assess, and analyze risks related to money laundering and terrorist financing. This includes:
- Identifying fields of lower and higher risk
- Establishing risk appetite
- Implementing simplified and enhanced due diligence measures to mitigate identified risks
Documentation and Reporting Requirements
The risk assessment and related documents must be maintained and updated regularly. Obliged entities must also submit the documents to supervisory authorities upon request.
Supervision and Enforcement
The Financial Supervision Authority will exercise supervision over obliged persons, ensuring compliance with AML/CTF regulations. The authority may request documentation from obliged entities and take enforcement action in cases of non-compliance.
By implementing this action plan, Estonia aims to strengthen its defenses against financial crimes and maintain a robust anti-money laundering and combating the financing of terrorism regime.