Financial Crime World

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Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Measures in Finland

Evaluated by the Financial Action Task Force (FATF)

The FATF has conducted a comprehensive evaluation of Finland’s AML/CTF framework, covering its effectiveness and technical compliance with international standards. This report highlights key points from the assessment.

Effectiveness

Finland’s authorities have demonstrated strong cooperation with foreign counterparts, particularly neighboring countries. Additionally, the Financial Supervisory Authority (FIN-FSA) actively engages in supervising EU and Nordic countries’ financial institutions.

  • International cooperation: Finnish authorities cooperate closely with their foreign counterparts.
  • AML/CFT supervision: The FIN-FSA actively engages in supervising EU and Nordic countries’ financial institutions.
  • Investigation and prosecution: Finland has a good track record of investigating and prosecuting money laundering cases.

Technical Compliance

While Finland’s AML/CTF framework demonstrates some strengths, there are areas that require improvement. Specifically:

  • Risk assessment: Finland’s AML/CFT supervisors need to accelerate the development of their risk-based approach methodology and implement it in relation to supervised entities as a priority.
  • Resources allocation: FIN-FSA and the National Supervisory Authority for Welfare and Health (RSAA) require adequate resources, including human resources, to conduct their AML/CFT supervisory responsibilities effectively.

Recommendations

To enhance its AML/CTF framework, Finland should:

  • Beneficial ownership registry: Ensure that information collected and stored in the beneficial ownership registry is subject to relevant verification.
  • Common understanding of ML/TF risks: Fill existing gaps in its common understanding of money laundering and terrorist financing risks and establish mechanisms to enable authorities and obliged entities to have an updated view of these risks.
  • Operational cooperation: Set up platforms or channels to support operational cooperation between relevant authorities, including the Financial Intelligence Unit (FIU) and local police departments.
  • Sentencing: Encourage the use of a wider range of sentences for aggravated money laundering cases.

Effectiveness and Technical Compliance Ratings

The FATF report assigns ratings to various aspects of Finland’s AML/CTF framework. “Substantial” indicates that the country has implemented most of the necessary measures, while “Moderate” indicates some progress but with room for improvement.