Financial Crime World

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Finland’s Anti-Money Laundering and Counter-Terrorist Financing Measures: Report by the Financial Action Task Force (FATF)

The Financial Action Task Force (FATF) has released a report on anti-money laundering (AML) and counter-terrorist financing (CTF) measures in Finland. The report highlights both strengths and areas for improvement in Finland’s AML/CTF regime.

International Cooperation

Finland’s authorities demonstrate strong international cooperation, particularly with neighboring countries such as Nordic countries and Estonia. Law enforcement agencies (LEAs) actively seek to build cases and share timely and accurate information with their counterparts abroad. The Financial Supervisory Authority (FIN-FSA), the main financial supervisor, engages regularly with its counterparts in EU and Nordic countries.

Recommendations

The report provides six priority actions for Finland to enhance its AML/CTF measures:

Priority Action 1: Accelerate and Finalize AML/CFT Supervision Methodology

  • Ensure that supervisors develop a risk-sensitive methodology for supervising entities
  • This will enable authorities to effectively identify and mitigate money laundering (ML) and terrorist financing (TF) risks

Priority Action 2: Allocate Adequate Resources

  • Provide sufficient human and financial resources to enable supervisors to conduct their responsibilities effectively
  • This is essential for ensuring that authorities can adequately supervise entities and respond to ML/TF threats

Priority Action 3: Implement Beneficial Ownership Registry

  • Ensure that the registry collects and stores verified information
  • Implement it as soon as possible to facilitate transparency and accountability in ownership structures

Priority Action 4: Fill Gaps in Understanding ML/TF Risks

  • Develop mechanisms for authorities and obliged entities to have an updated view of ML/TF risks affecting the country
  • This will enable informed decision-making and effective risk mitigation strategies

Priority Action 5: Establish Operational Cooperation Platforms

  • Create channels to support cooperation between relevant authorities
  • Improve understanding of ML/TF risks and leverage the potential of the Financial Intelligence Unit (FIU)

Priority Action 6: Encourage Proportionate Sentencing

  • Encourage courts to use a wider range of sentences for aggravated money laundering cases
  • This will enhance deterrence and ensure that serious offenses are punished accordingly

Effectiveness and Technical Compliance Ratings

The report assigns effectiveness ratings for various aspects of Finland’s AML/CFT measures, with “Substantial” or “Moderate” ratings in most areas. Technical compliance ratings are also provided, with “LC” (Largely Compliant), “PC” (Partially Compliant), and “C” (Compliant) ratings.

Overall, the report highlights Finland’s good international cooperation and supervision efforts, but identifies areas for improvement in its AML/CTF measures.