Financial Crime World

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Finland Tightens Grip on Financial Crime with Robust Regulatory Framework

Helsinki, Finland - In a bid to combat financial crime and money laundering, the Finnish government has put in place a robust regulatory framework that aligns with European Union directives. The move aims to strengthen the country’s defenses against illicit activities and ensure compliance with international standards.

Directives and EU-Level Regulations

At the heart of Finland’s anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts are a series of directives and regulations issued by the European Parliament and Council. These include:

  • Directive (EU) 2018/843, which amends Directive (EU) 2015/849 on the prevention of the use of the financial system for money laundering or terrorist financing.
  • Regulation (EU) 2015/847, also known as the second Funds Transfer Regulation, which obliges providers to notify the Financial Supervisory Authority (FIN-FSA) of shortcomings identified in information accompanying funds transfers.

Finnish Legislation

The Ministry of Finance plays a crucial role in developing AML/CFT legislation in Finland. The country has implemented various laws and regulations to prevent money laundering and terrorist financing, including:

  • Act on Preventing Money Laundering and Terrorist Financing (444/2017), which sets out the framework for preventing money laundering and terrorist financing.
  • Act on Financial Intelligence Unit (445/2017), which establishes a unit responsible for analyzing financial data to identify suspicious transactions.

Regulatory Technical Standards

The European Commission has issued regulatory technical standards to supplement Directive (EU) 2015/849. These include:

  • RTS on CCP, which strengthens the fight against financial crime by introducing central contact points for electronic money issuers and payment service providers.
  • RTS on group-wide AML/CFT policies in third countries, which requires credit institutions to implement group-wide AML/CFT policies when operating in third countries.

Penal Code and Financial Laws

Finland’s Penal Code (39/1889) includes provisions on money laundering and terrorist financing offenses. The country has also enacted various financial laws, such as the Credit Institutions Act (610/2014), to ensure compliance with EU directives and international standards.

Regulations and Guidelines

The FIN-FSA has issued regulations and guidelines to support the implementation of AML/CFT measures in Finland. These include:

  • Regulations and guidelines 2/2023 on preventing money laundering and terrorist financing.
  • Regulations and guidelines 4/2023 on customer due diligence related to compliance with sanctions regulation and national freezing orders.

Conclusion

Finland’s robust regulatory framework demonstrates the country’s commitment to combating financial crime and money laundering. By aligning with European Union directives and implementing domestic laws and regulations, Finland is well-equipped to prevent illicit activities and ensure a safe and stable financial system.