Faroe Islands Banking Industry Braces for Increased Focus on Financial Crime

Regulatory Spotlight Shines Brighter on Faroese Banks

The Faroese banking industry is preparing to face an intensified regulatory focus on combating financial crime, driven by evolving technologies and geopolitical events. Authorities are looking to strengthen measures against anti-money laundering (AML) and counter-terrorist financing (CFT), beneficial ownership, sanctions/tax evasion, consumer scams, and compliance violations.

Areas of Focus for Regulatory Attention

• Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT)
• Beneficial Ownership
• Sanctions/Tax Evasion
• Consumer Scams
• Compliance Violations
• Crypto and Digital Assets, NFTs, and DeFi Platforms
• Sanctions and Price Cap Compliance

Industry Experts Weigh In

Fiachre O’Neill, Chief Risk & Compliance Officer at PayPal: “The Faroese banking industry must be proactive in identifying trends and risks associated with financial crime. This includes leveraging technology and data to monitor activity, while also instilling a strong culture of doing the right thing.”

Amy S. Matsuo, Principal at KPMG LLP: “The Faroese banking industry must be proactive in addressing these challenges and prioritizing effective risk management. This includes eliminating antiquated technology, establishing a mature conduct risk program, and strengthening controls in regulatory focal areas.”

Key Challenges Ahead

• Leveraging Technology and Data for Effective Monitoring
• Prioritizing Customer Experience and Strong Culture of Compliance
• Eliminating Antiquated Technology and Strengthening Controls
• Establishing Mature Conduct Risk Program