Money Laundering and Terrorist Financing Laws in the European Union: A Focus on Finland

Introduction

The European Union (EU) has implemented various laws and regulations to prevent money laundering and terrorist financing. This article provides an overview of these regulations, with a focus on Finland’s implementation.

Key Regulations

The Fourth and Fifth Money Laundering Directives

Finland has implemented the following key directives:

• Act on the Bank and Payment Accounts Control System: This act requires financial institutions to verify customer identities and report suspicious transactions.
• Act on Virtual Currency Providers: This act regulates virtual currency providers, such as Bitcoin exchanges, and requires them to implement anti-money laundering measures.

The Second Funds Transfer Regulation

This regulation requires payment service providers to deliver detailed information on payers and payees along with funds transfers. This includes:

• Information about the payer, including their name, address, and date of birth
• Information about the payee, including their name, address, and account details
• The amount and currency of the transfer

EU Anti-Money Laundering Package

The EU’s anti-money laundering package includes:

• Regulation establishing an EU anti-money laundering authority (AMLA): This regulation establishes a central authority to oversee anti-money laundering efforts across the EU.
• Anti-Money Laundering Regulation: This regulation sets out specific requirements for financial institutions, including customer due diligence and reporting suspicious transactions.
• Sixth Anti-Money Laundering Directive: This directive updates existing anti-money laundering laws and regulations in the EU.
• Recast of the Regulation on Transfers of Funds: This recast regulation updates the rules governing cross-border transfers.

Financial Action Task Force (FATF) Recommendations

The FATF is an intergovernmental organization that develops and promotes policies to protect the global financial system against money laundering, terrorist financing, and other threats. The FATF recommends that countries implement the following measures:

• Customer due diligence: Financial institutions should verify customer identities and conduct ongoing monitoring of customer activities.
• Reporting suspicious transactions: Financial institutions should report suspicious transactions to the relevant authorities.
• Implementation of anti-money laundering systems: Countries should implement robust anti-money laundering systems, including customer identification, transaction monitoring, and reporting.