Financial Crime World

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FATF Report on Finland’s Anti-Money Laundering and Counter-Terrorist Financing Measures

The Financial Action Task Force (FATF) has released a report evaluating Finland’s anti-money laundering (AML) and counter-terrorist financing (CTF) measures. The report highlights areas of strength and weakness, providing recommendations for improvement.

International Cooperation

Finland’s authorities have demonstrated cooperation with foreign counterparts, particularly neighboring countries. Law enforcement agencies (LEAs) actively seek international cooperation to build cases and share information.

Key Points

  • Finnish authorities cooperate with foreign counterparts.
  • LEAs seek international cooperation to build cases and share information.

Recommendations for Improvement

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

1. Accelerate Development of Risk-Based Approach

Finish the methodology for AML/CFT supervision on a risk-sensitive basis.

2. Allocate Adequate Resources

Provide sufficient human resources, including for FIN-FSA and RSAA.

3. Implement Beneficial Ownership Registry

Ensure the information collected is subject to relevant verification and implement the registry urgently.

4. Fill Gaps in Understanding of ML/TF Risks

Mechanisms should be in place to enable authorities to have an updated view of ML/TF risks affecting the country.

5. Support Operational Cooperation

Set up platforms and channels for LEAs, FIU, and AML/CFT supervisors to improve understanding of ML/TF risks.

6. Improve Sentencing for Aggravated ML Cases

Encourage courts to use a wider range of sentences.

Effectiveness and Technical Compliance Ratings

The report provides ratings on effectiveness and technical compliance with various aspects of Finland’s AML/CFT measures:

  • Effectiveness: Substantial or Moderate (depending on the aspect)
  • Technical Compliance: Low, Moderate, or Compliant (depending on the aspect)

Some areas for improvement include:

R.1 - Assessing Risk & Applying Risk-Based Approach

Low Compliance (LC)

R.2 - National Cooperation and Coordination

Partial Compliance (PC)

R.9 – Financial Institution Secrecy Laws

Compliant (C)

R.10 – Customer Due Diligence

Compliant (C)