Title: FATF’s Positive Report on Norway’s Progress in AML/CFT Measures: Third Enhanced Follow-up and Technical Compliance Re-rating

The Financial Action Task Force (FATF), an international organization dedicated to combating money laundering and terrorist financing, has issued a positive report on Norway’s progress in implementing anti-money laundering and counter-terrorist financing (AML/CFT) measures.

FATF’s February 2018 Plenary Meeting and Third Enhanced Follow-up Report for Norway

During the FATF’s February 2018 Plenary meeting, Norway’s request for technical compliance re-ratings was given significant attention by experts from the U.S. Department of Justice and the Hong Kong Monetary Authority. The report focuses on improvements in technical compliance, addressing deficiencies identified in Norway’s 2014 Mutual Evaluation Report (MER) and new requirements related to FATF Recommendations that have changed since then – Recommendations 5, 7, and 8.

Key Findings from the Third Enhanced Follow-up Report

1. Significant Progress in Technical Compliance: Norway has made great strides in improving its technical compliance with various FATF Recommendations. For instance, the Contact Forum was established to assess risks, identify ML/TF threats, and coordinate work on developing AML/CFT strategies. The second National Risk Assessment (NRA), published in 2016, covers both money laundering and terrorist financing and is based on the FATF’s 2013 Guidance on National ML/TF Risk Assessment.
2. Improvements in Cooperation and Coordination: New measures have been implemented to sell or dispose of seized assets and manage those that are particularly complex, such as vessels or aircraft. Reporting entities are now required to conduct risk assessments, focusing on ML/TF risks, as per the FSA’s updated guidance.
3. Addressing Remaining Deficiencies: While most deficiencies have been addressed, some minor deficiencies remain, and the focus is on strengthening Norway’s broader AML/CFT system.

FATF’s Re-ratings for Norway

As a result of these efforts, the FATF has re-rated various Recommendations for Norway, including Recommendations 1, 2, 4, 5, 7, 15, 26, and 28. However, some Recommendations, like Recommendation 33, still require attention and improvement.

Conclusion

The FATF’s third enhanced follow-up report and technical compliance re-rating for Norway highlight the country’s commitment to strengthening its AML/CFT systems, ensuring the global financial system is protected from money laundering and terrorist financing. While significant progress has been made, there is still work to be done in fully complying with all FATF Recommendations.