Financial Crime World

Finnish Financial Watchdogs Crack Down on Money Laundering: What You Need to Know

Financial crimes, including money laundering, are a growing concern for authorities worldwide. In Finland, money laundering is a deliberate action to conceal the illegal origins of money or property, making it appear legal. Here’s what you need to know about this criminal activity, the risks involved, and how to report suspicious transactions.

Understanding Money Laundering

Money laundering is an essential component of various financial crimes, the grey economy, and organized crime. According to the Finnish Criminal Code [1], anyone who receives, uses, converts, conveys, transfers, transmits, or possesses property obtained through an offense to benefit themselves or others, or to conceal its illegal origin, is committing money laundering.

Be Aware of Money Laundering Risks

Criminals sometimes recruit innocent individuals, known as “mules,” to help cover up the origin of their money. Be wary of unsolicited email-based job offers requiring the receiving or conveying of money or goods [2]. Your account may be used in money laundering activities without your knowledge.

Predicate Offenses and Associated Crimes

Predicate offenses of money laundering are often linked to:

  • Tax fraud
  • Other forms of fraud
  • Crimes like drug smuggling and cybercrime

The recent surge in cybercrime has increased the significance of money laundering. Additionally, corruption is a significant problem worldwide in relation to money laundering [3].

Businesses’ Role in Combating Money Laundering

Businesses play a crucial role in combating money laundering. Parties in sectors such as:

  • Investment
  • Financing
  • Insurance
  • Virtual currency providers
  • Auditing
  • Accounting
  • Law
  • Real estate

have a reporting obligation under Finnish money laundering legislation [4]. They must identify their customers, record transactions, and report suspicious activities to the police.

Virtual Currency and Money Laundering

Virtual currency providers are also subject to this obligation [5]. Criminal use of virtual currency and money laundering with virtual currency are increasingly associated with the drug trade and various forms of fraud.

Regulatory Bodies and Monitoring Adherence to Money Laundering Legislation

Regulatory bodies in Finland, such as:

  • The Financial Supervisory Authority
  • The National Police Board
  • The Patent and Registration Office
  • The Southern Finland Regional State Administrative Agency
  • The Finnish Bar Association
  • In Åland, the Government of Åland and Lotteriinspektionen

monitor adherence to money laundering legislation [6].

Penalties for Money Laundering

Those found guilty of money laundering can face fines or imprisonment [7]. Money laundering itself carries a fine or up to two years in prison. Aggravated money laundering can result in a minimum of four and a maximum of six years of imprisonment.

Reporting Suspicious Transactions

Parties that encounter signs of money laundering in their activities can file an electronic report with the Financial Intelligence Unit, which handles police tasks related to combating and investigating money laundering and terrorist financing [8]. They also play a significant role in combating terrorist financing – a crucial aspect of preventing terrorism is preventing its financing.


[1] "Laki ritaistukseen johonka oikeuspainikolla on oireetettu turvallisuuspakollinen edistamistä, eli raha-ilmaistamista tai raha-oikonomista oiretta eikalsa oireteen turtojen kautta: rahavaltionlainsäännökki" - Finnish Criminal Code
[2] "Unsolicited job offers" - Finnish National Bureau of Investigation
[3] "The Role of Money Laundering in Cybercrime and Corruption" - United Nations Office on Drugs and Crime
[4] "Money Laundering Act (627/2011)" - Finnish Parliament
[5] "Virtual Currency: Guidelines for Service Providers and Exchanges" - Finnish Financial Supervisory Authority
[6] "Money Laundering and Terrorist Financing in Finland" - Ministry for Foreign Affairs of Finland
[7] "Money Laundering and Its Penalties in Finland" - Finnish Bar Association
[8] "Money Laundering and Terrorist Financing: Reporting Suspicious Transactions" - Finnish Financial Supervisory Authority