Estonia Toughens Up on AML/CTF Regulations with New Guidelines
In an effort to strengthen its fight against money laundering and terrorist financing, Estonia has issued new advisory guidelines for the financial sector. These guidelines aim to ensure that credit and financial institutions in Estonia adhere to international standards and prevent the misuse of their services.
New Guidelines in Line with European Banking Authority Recommendations
The guidelines were approved by Finantsinspektsioon, Estonia’s financial supervision authority, and will be disclosed on its website. The “comply or explain” principle applies to the guidelines, which means that supervised entities must justify any deviations from the guidelines or provide an explanation for partial implementation.
Key Topics Covered in the Guidelines
The EBA guidelines adopted as advisory guidelines by Finantsinspektsioon cover a range of topics, including:
- Customer due diligence
- Risk assessment
- Compliance management
- Remote customer onboarding solutions
- Policies and controls for managing money laundering and terrorist financing risks
- Cooperation and information exchange between supervisors
Implementation Deadline and Consequences
Estonia’s financial sector is expected to implement the new guidelines by [insert date]. Failure to comply may result in penalties or other regulatory actions.
Additional Guidelines Issued by Finantsinspektsioon
In addition to EBA guidelines, Finantsinspektsioon has also issued its own guidelines on topics such as:
- Suspicious transactions
- Reporting obligations
The authority has also adopted regulations from European Union directives, including the 6th Anti-Money Laundering Directive and Commission delegated regulation (EU) 2019/758.
Estonia’s Efforts to Strengthen AML/CFT Regime
Estonia’s efforts to strengthen its AML/CFT regime come amid growing concerns over money laundering and terrorist financing globally. As a member of the European Union, Estonia is bound by EU anti-money laundering directives, which require its financial sector to adhere to international standards.
Expected Outcomes
The new guidelines are expected to enhance Estonia’s ability to detect and prevent money laundering and terrorist financing activities, and ensure the integrity of its financial system.