Financial Crime World

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Financial Crime Prevention Strategies in Finland: A Comprehensive Overview

Finland has been at the forefront of implementing effective measures to prevent financial crime, including money laundering and terrorist financing. The country’s regulatory framework is designed to ensure that financial institutions and other players in the sector adhere to international standards and best practices.

Directives and EU-Level Regulations

The European Union’s Fourth Anti-Money Laundering Directive (AMLD4) has been implemented in Finland through various regulations and guidelines. One of the key directives is the Funds Transfer Regulation, which obliges providers to notify the Finnish Financial Supervisory Authority (FIN-FSA) of shortcomings identified by them in information accompanying funds transfers.

Key Laws and Regulations

  • Act on Preventing Money Laundering and Terrorist Financing (444/2017): This act sets out the framework for preventing money laundering and terrorist financing in Finland. It requires financial institutions to implement customer due diligence measures, including verifying the identity of customers and monitoring their transactions.
  • Act on Financial Intelligence Unit (445/2017): This act establishes a national financial intelligence unit that is responsible for collecting and analyzing information related to suspicious transactions and other financial crimes.

Government Decrees

The Government Decree on Measures for Customer Due Diligence and Money Laundering and Terrorist Financing Risk Factors (929/2021) sets out the requirements for customer due diligence and risk assessment in Finland. The decree requires financial institutions to assess the risks associated with their customers and transactions, and to implement measures to mitigate those risks.

Penal Code

The Penal Code of Finland (39/1889) sets out the penalties for money laundering and terrorist financing offenses. Chapter 32 of the code deals specifically with money laundering offenses, while Chapter 34a deals with terrorist offenses.

Regulations and Guidelines

  • Regulations and Guidelines 2/2023 on Preventing Money Laundering and Terrorist Financing: These guidelines provide support for implementing anti-money laundering and counter-terrorist financing measures in Finland.
  • Regulations and Guidelines 4/2023 on Customer Due Diligence Related to Compliance with Sanctions Regulation and National Freezing Orders: These guidelines also provide support for implementing customer due diligence measures in accordance with sanctions regulation and national freezing orders.

Key Players

  • The Finnish Financial Supervisory Authority (FIN-FSA) is responsible for supervising financial institutions and ensuring that they comply with anti-money laundering and counter-terrorist financing regulations.
  • The national financial intelligence unit, established under the Act on Financial Intelligence Unit, plays a key role in collecting and analyzing information related to suspicious transactions and other financial crimes.

In conclusion, Finland has implemented a comprehensive framework to prevent financial crime, including money laundering and terrorist financing. The country’s regulatory framework is designed to ensure that financial institutions and other players in the sector adhere to international standards and best practices.