Financial Crime World

Finland’s Progress in AML/CTF Measures: FATF’s Latest Report (October 2023)

The Financial Action Task Force (FATF) published its fourth enhanced follow-up report on Finland’s progress in combating money laundering and terrorist financing.

Improvements in Finland’s Technical Compliance

Since the Mutual Evaluation Report (MER) in 2019, Finland has made strides in improving its technical compliance with the FATF Recommendations:

  • Recommendation 13 on Correspondent Banking: Finland has extended Enhanced Due Diligence (EDD) to correspondent banking relationships with EU countries in high-risk situations. Although not yet rated “Compliant,” deficiencies are being addressed.
  • Recommendation 19 on Enhanced Customer Due Diligence (ECDD) for High-Risk Third Countries: Finland has updated legislation, applying countermeasures and EDD measures to both EEA and non-EEA countries. Though the rating remains “Largely Compliant,” noticeable progress has been made.

Areas Requiring Further Improvement

Finland still faces challenges in meeting the FATF Recommendations in full:

  1. Continued efforts: The FATF emphasizes the importance of addressing most, if not all, technical compliance deficiencies within three years following the MER adoption. Finland is encouraged to sustain implementation of its AML/CTF action plan.
  2. Future evaluations: The report concludes with a call for Finland to work towards achieving a fully compliant status in all recommendations.

For more details, read the full FATF report.

This article is for informative purposes only; consult professionals for advice.

FATF Report Highlights

  • October 2023: Publication of FATF’s fourth enhanced follow-up report on Finland.
  • Progress made: Finland addresses technical compliance deficiencies identified in the 2019 MER.
  • Still needing improvement: Finland continues addressing challenges to meet the FATF Recommendations fully.

Review the report on the FATF website.

Recommendation 13 on Correspondent Banking

Finland improves its stance by:

  1. Extending EDD application to correspondent banking relationships with EU countries.
  2. Acknowledged need for additional improvements.

Recommendation 19 on ECDD for High-Risk Third Countries

Finland’s progress includes:

  1. Updating legislation to implement EDD measures and countermeasures.
  2. Addressing deficiencies, still “Largely Compliant.”