Financial Crime World

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Finland Sees Significant Progress in Financial Inclusion and Compliance Efforts

Finland has made substantial strides in implementing the Financial Action Task Force (FATF) Recommendations, according to a recent follow-up report. The country’s financial inclusion and compliance efforts have been recognized as largely compliant with international standards in many areas.

Strong Commitment to Combating Money Laundering and Terrorist Financing

The report highlights Finland’s strong commitment to combating money laundering and terrorist financing. The country has implemented effective measures to:

  • Assess risk and apply a risk-based approach (R.1)
  • Ensure national cooperation and coordination (R.2)
  • Establish money laundering offenses (R.3)
  • Implement confiscation and provisional measures (R.4)
  • Apply targeted financial sanctions related to terrorism and terrorist financing (R.6)

Progress in Key Areas

Finland has also made progress in implementing customer due diligence requirements for financial institutions (R.10) and maintaining accurate records (R.11). The country’s efforts to identify and manage:

  • Politically exposed persons (R.12)
  • Correspondent banking relationships (R.13) have been deemed largely compliant.

Areas Requiring Further Improvement

However, some areas require further improvement. Finland has been rated as partially compliant in implementing measures for:

  • Non-profit organizations (R.8)
  • Financial institution secrecy laws (R.9)
  • Money or value transfer services (R.14)

Additionally, the country’s reliance on third parties to comply with AML/CFT regulations (R.17) is also a concern.

Key Findings

The key findings of the report are:

Largely Compliant

  • R.1: Assess risk and apply a risk-based approach
  • R.2: Ensure national cooperation and coordination
  • R.3: Establish money laundering offenses
  • R.4: Implement confiscation and provisional measures
  • R.6: Apply targeted financial sanctions related to terrorism and terrorist financing
  • R.10: Customer due diligence requirements for financial institutions
  • R.11: Maintain accurate records
  • R.12: Identify and manage politically exposed persons
  • R.13: Correspondent banking relationships

Partially Compliant

  • R.8: Measures for non-profit organizations
  • R.9: Financial institution secrecy laws
  • R.14: Money or value transfer services

Areas for Improvement

  • R.17: Reliance on third parties to comply with AML/CFT regulations
  • R.28: Regulation and supervision of DNFBPs (designated non-financial businesses and professions)
  • R.24: Transparency and beneficial ownership requirements for legal persons
  • R.25: Arrangements