Estonia Urged to Strengthen Anti-Money Laundering Measures by International Watchdog
A recent report by the Council of Europe’s anti-money laundering body, MONEYVAL, has highlighted several areas where Estonia needs to improve its efforts to combat money laundering and terrorism financing.
Compliance with Financial Action Task Force (FATF) Recommendations
The report assesses Estonia’s compliance with FATF recommendations and urges the country to strengthen its law enforcement efforts and private sector measures. While acknowledging significant progress in international cooperation and financial intelligence, MONEYVAL found that further improvements are needed in several areas.
Areas for Improvement
- Enhancing understanding of money laundering and terrorism financing risks
- Improving effectiveness of investigations and prosecutions
- Increasing confiscation of criminal proceeds
- Enhancing efforts to seize and recover criminal assets domestically and abroad
Law Enforcement Efforts
The report notes that Estonia’s law enforcement authorities need to improve their efforts in investigating and prosecuting complex money laundering cases, particularly those involving legal persons and company service providers.
Private Sector Measures
MONEYVAL commended the private sector for its coordination and cooperation with supervisory authorities but emphasized the need for improved understanding of money laundering and terrorism financing risks among virtual assets service providers and company service providers. The report urges supervisory authorities to continue strengthening implementation of preventative measures by the private sector.
Beneficial Ownership Information
The report found that Estonia’s beneficial ownership information is available to competent authorities but does not provide adequate, accurate, and current information due to poorly designed customer due diligence measures implemented by company service providers.
Sanctions
Applicable sanctions were also found to be ineffective in combating money laundering and terrorism financing.
International Cooperation
Estonia was praised for its international cooperation, providing timely and constructive assistance in responding to requests for mutual legal assistance. However, the report concluded that Estonia is subject to MONEYVAL’s enhanced follow-up reporting process due to concerns over its anti-money laundering measures.
Full Report Available Online
The full report is available online at [link].