Financial Crime Definition Sparks Concern in Finland: Understanding Money Laundering and Reporting Obligations

The concept of money laundering continues to pose a significant threat to global economies, with Finland being no exception. As an integral part of financial crime, the grey economy, and organized crime, money laundering has become a major concern for law enforcement agencies and regulatory bodies.

What is Money Laundering?

Money laundering is defined as an attempt to conceal the origin of property or funds obtained through illegal means, with the ultimate goal of making it appear as if they were acquired legally. This deliberate criminal activity centers on covering up illegally-acquired assets, often linked to predicate offenses such as tax fraud, other forms of fraud, and crimes like drug smuggling and cybercrime.

Crucial Elements of Money Laundering

A person is considered guilty of money laundering in Finland if they:

Receive, use, convert, convey, transfer, transmit, or possess property acquired through an offense
Have the intention of obtaining a benefit for themselves or another individual
Attempt to conceal the illegal origin of said property
Are aware or suspect that the property has an illicit origin and take action despite this knowledge

Recruitment of “Mules”

The recruitment of “mules” is a common tactic used by offenders to help cover up the origin of funds. These individuals may be lured into money laundering activities through various means, including email-based job offers that involve receiving or conveying money or goods.

Reporting Suspicious Activities

Reporting suspicious activities is a crucial aspect of combating money laundering in Finland. Various entities, including those in the investment, financing, and insurance sectors, virtual currency providers, auditors, accountants, lawyers, and real estate businesses, have an obligation to report any suspected money laundering they may encounter.

These parties must:

Identify their customers and verify their identity
Record data on transactions, business activities, and grounds for using services or products
Report suspicious business transactions to the police website by parties with a reporting obligation

Virtual Currency Providers

Virtual currency providers also play a vital role in combating money laundering, as they must identify customers and report any suspicious transactions. In Finland and internationally, virtual currencies are often associated with the drug trade and various forms of fraud.

Regulatory Bodies

Regulatory bodies in Finland, including the Financial Supervisory Authority, National Police Board, Patent and Registration Office, Southern Finland Regional State Administrative Agency, and Finnish Bar Association, monitor observance of money laundering legislation.

Offenses related to money laundering can result in fines or imprisonment. Aggravated money laundering carries a minimum sentence of four years and a maximum of six years in prison.

Conclusion

Understanding the definition and implications of money laundering is essential for combating this complex crime in Finland. By recognizing the tactics used by offenders and the importance of reporting suspicious activities, parties involved in business can play a vital role in preventing and investigating money laundering crimes.