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Finland Faces Challenges in Combating Financial Crimes
Finland’s efforts to combat money laundering and terrorist financing have yielded positive results, but the country still needs to strengthen its supervision of financial and non-financial institutions to effectively prevent these crimes.
Positive Developments and Areas for Improvement
A recent assessment by the Financial Action Task Force (FATF) found that Finland has a solid framework in place to combat money laundering and terrorist financing, which is delivering some good results. However, there are areas where the country’s effectiveness can be improved, particularly with regards to the supervision of financial institutions.
Main Risks Associated with Money Laundering
- Grey economy
- Domestic and foreign frauds
- Proceeds of drug crimes
Terrorist Financing Risks in Finland
- Sympathizers of terrorist causes
- Foreign terrorist fighters, including those affiliated with ISIL
Challenges in Investigating Terrorist Financing Cases
Finland’s authorities have demonstrated a good understanding of these risks and are addressing them through coordinated efforts. However, there is room for improvement when it comes to investigating terrorist financing cases, particularly in light of the evolving threat landscape.
Financial Institutions’ Awareness of Risks
Financial institutions in Finland have shown an adequate understanding of their exposure to money laundering risks and the steps needed to mitigate them. However, there are gaps in their awareness of terrorist financing risks, which has resulted in a lack of suspicious transaction reporting for further investigation.
Need for Improved Supervision and Resources
The supervisors need to improve their risk-based supervision of all sectors and require significant resources to effectively prevent financial crimes. The country also needs to demonstrate its ability to recover assets and ensure that policies are successful in permanently depriving criminals of their ill-gotten gains.
Cooperation with Foreign Counterparts
Finland’s cooperation with foreign counterparts has been satisfactory, with timely and accurate information sharing and complex international money laundering investigations conducted. However, the use of analysis produced by the financial intelligence unit and access to beneficial ownership information can be improved.
Conclusion
Overall, Finland needs to strengthen its supervision of financial and non-financial institutions, improve its investigation and prosecution of terrorist financing cases, and enhance its cooperation with foreign counterparts to effectively combat financial crimes.