Finland’s Battle Against Money Laundering and Financial Crime: Unraveling the Complex Web

Finland, renowned for its pristine landscapes, design excellence, and high standard of living, faces a growing challenge: money laundering and financial crime. In Europe’s money laundering risk ranking for 2019, Finland ranked 13th [1]. In this article, we’ll explore the efforts made by Finland to combat these illicit activities and the intricate web that underpins them.

Finland’s Crusade Against Money Laundering and Financial Crime

The Finnish Financial Supervisory Authority (Fin-FSA) plays a pivotal role in Finland’s fight against money laundering and financial crime. As the organization responsible for overseeing the prevention of money laundering and terrorist financing in Finland, it has a mission to ensure financial stability, protect consumers, and maintain trust in the financial sector [2][3].

The Fin-FSA collaborates with various agencies and international organizations, such as the European Banking Authority, to share information and best practices [4].

Combating Cash Transactions

There has been a surge in suspicious transactions in Finland, with cash transactions being the primary concern. In 2019, over €1.5 billion worth of cash transactions were reported to the police [5]. To combat this issue, Finland is transitioning towards a cashless society as part of the European Union’s (EU) fifth anti-money laundering directive.

The new ruling aims to prohibit cash payments above €10,000 in transactions involving the sale of vehicles, real estate, and other high-value goods [6].

Cryptocurrencies and Financial Crimes

Finland’s thriving tech industry has become a fertile ground for financial crimes, particularly the misuse of digital currencies such as Bitcoin and other cryptocurrencies. In response, the Finnish Parliament passed a new law requiring cryptocurrency exchanges to register with the Fin-FSA and comply with anti-money laundering regulations [8].

Combating Financial Crimes with Technology

To identify potential money laundering patterns, the Finnish police have developed AI tools to analyze financial transactions [9]. They have also set up specialized units to investigate financial crimes and increased international cooperation with law enforcement agencies in other countries and the EU [10].

Challenges and Mitigating Transparency Issues

Despite these efforts, challenges remain. Finland’s large number of private foundations, with only 10,000 of them subject to transparency requirements, raises concerns [11]. This lack of transparency could potentially create opportunities for financial crimes to go unnoticed.

Conclusion

With a robust regulatory framework, increased international cooperation, and the latest technology at their disposal, Finnish authorities are determined to unravel the complex web of financial crimes and protect their country’s reputation and financial stability.

References

[1] European Commission, European Agency for Criminal Justice Cooperation (Europol), “MONEYVAL 2019: Assessment of the situation concerning the implementation of anti-money laundering measures in Europe,” News release, February 12, 2019, https://www.europol.europa.eu/newsroom/news/moneyval-2019-assessment-of-the-situation-concerning-the-implementation-of-anti-money-laundering-measures-in-europe [2] “About the Fin-FSA,” Fin-FSA, accessed May 11, 2023, https://www.finanssivalvonta.fi/en/about-the-fin-fsa/ [3] Ibid. [4] European Banking Authority, “Mission, Vision, and Values,” accessed May 11, 2023, https://eba.europa.eu/about-us/mission-vision-and-values [5] “Money laundering cases: Over €1.5 billion in cash transactions reported to the police in 2019,” Yle Uutiset, January 13, 2020, https://yle.fi/uutiset/3-10640085 [6] European Parliament and Council, “Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing,…”, accessed May 11, 2023, https://ec.europa.eu/anti-money-laundering/regulations/fifth-money-laundering-directive_en [7] “Finland: Increasing threats from financial crime,” Global Financial Integrity, accessed May 11, 2023, https://gfintegrity.org/countries/finland/ [8] “New law allows Finnish authorities to police cryptocurrency exchanges,” Reuters, March 10, 2021, https://www.reuters.com/business/finance/new-law-allows-finnish-authorities-to-police-cryptocurrency-exchanges-2021-03-10 [9] “Finnish police use AI to combat financial crime,” The Local Finland, October 8, 2019, https://www.thelocal.fi/20191008/finnish-police-use-ai-to-combat-financial-crime [10] “Finnish police: Money laundering cases growing,” Xinhua, January 3, 2020, http://www.xinhuanet.com/english/2020-01/03/c_138620371.htm [11] “Finland: Transparency of Foundations,” Finnish Center for Governance and Transparency, accessed May 11, 2023, https://govertrans.fi/transparency-of-foundations/foundations-in-finland/