Financial Crime World

Financial Action Task Force (FATF) Report: Evaluating Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Measures in Finland

International Cooperation

Finland’s authorities have demonstrated a strong commitment to international cooperation, particularly with neighboring countries like Nordic nations and Estonia.

  • Foreign Partnerships: Finnish law enforcement agencies (LEAs) seek international cooperation to build cases and share timely and accurate information.
  • Regional Collaboration: Neighboring countries provide an important platform for Finland to collaborate on AML/CTF efforts.

Priority Actions

The FATF report has identified six priority actions for Finland to improve its AML/CTF measures:

1. Accelerate Development of Risk-Based Approach

  • Finalize Methodology: FIN-FSA should complete the methodology for AML/CFT supervision on a risk-sensitive basis.
  • Enhance Supervision: Provide sufficient resources to ensure effective and efficient supervision.

2. Allocate Adequate Resources

  • Human Resources: Ensure that AML/CTF supervisors have sufficient personnel to carry out their duties effectively.
  • Financial Resources: Provide necessary funding for AML/CTF efforts, including FIN-FSA and RSAA.

3. Implement Beneficial Ownership Registry

  • Verification Framework: Establish a framework that requires relevant verification of beneficial ownership.
  • Urgent Implementation: Ensure the registry is implemented as soon as possible.

4. Fill Gaps in Understanding ML/TF Risks

  • Risk Assessment: Improve mechanisms for authorities and obliged entities to have an updated view of ML/TF risks affecting Finland.
  • Risk Management: Implement effective risk management strategies to mitigate identified risks.

5. Establish Operational Cooperation Platforms

  • FIU-LEA Collaboration: Support operational cooperation between the FIU, LEAs, and other relevant authorities.
  • Information Sharing: Facilitate the sharing of timely and accurate information between cooperating agencies.

6. Encourage Proportionate Sentencing

  • Aggravated ML Cases: Encourage courts to use a wider range of sentences for aggravated money laundering cases.

Effectiveness & Technical Compliance Ratings

The report provides ratings for effectiveness (IO) and technical compliance (R):

  • Effectiveness: Finland has substantial or high ratings in several areas, including risk assessment, international cooperation, supervision, and financial intelligence.
  • Technical Compliance: Finland has largely compliant (LC), partially compliant (PC), or non-compliant (NC) ratings in various areas, including money laundering offence, confiscation, terrorist financing offence, and customer due diligence.

Conclusion

Overall, the report identifies areas where Finland needs to improve its AML/CTF measures to meet international standards. By addressing these priority actions, Finland can strengthen its AML/CTF regime and enhance its reputation as a secure and trustworthy financial hub.