Financial Crime World

Finland’s Anti-Money Laundering Landscape: Key Laws and Regulations

Finland, as a member of the European Union (EU), has implemented various legislations to prevent money laundering and terrorist financing in its financial system. The Ministry of Finance is responsible for the development of these laws, which align with both national and EU-level directives and regulations.

European Union Regulations

The European Union (EU) has implemented several regulations to combat money laundering and terrorist financing. Some of the key regulations are:

  • Directive (EU) 2018/843 on the prevention of the use of the financial system for money laundering or terrorist financing: This directive aims to prevent the financial system from being used for money laundering or terrorist financing activities.
  • Directive (EU) 2015/849, amending Directive 2009/138/EC and 2013/36/EU: Known as the Fourth Anti-Money Laundering Directive (AMLD4), this directive enhances the EU regulatory framework against money laundering and terrorist financing.
  • Regulation (EU) 2015/847 on information accompanying transfers of funds: This regulation obliges providers to report shortcomings identified in information accompanying funds transfers to the Financial Supervisory Authority (FIN-FSA) of the recipient country.

Finnish Laws and Regulations

In addition to EU regulations, Finland has implemented the following laws and regulations:

  1. Act on Preventing Money Laundering and Terrorist Financing (444/2017): This act sets out the general provisions, including the definition of money laundering, terrorist financing, and related terms.
  2. Act on the Financial Intelligence Unit (445/2017): Establishes the Finnish Financial Intelligence Unit (FIU), which is responsible for receiving, processing, and analyzing suspicious transactions reported by Financial Institutions.
  3. Act on the Bank and Payment Accounts Control System (571/2019): This act establishes the Bank and Payment Accounts Control System to monitor transactions to prevent money laundering and terrorist financing activities.
  4. Act on Virtual Currency Providers (572/2019): Regulates the operations of virtual currency providers.
  5. Act on Financial Supervisory Authority (878/2008): Establishes the Financial Supervisory Authority of Finland (FIN-FSA).
  6. Government Decree on customer due diligence and money laundering and terrorist financing risk factors (929/2021): Outlines the Customer Due Diligence (CDD) procedures and risk factors that Financial Institutions must consider.
  7. Government Decree on Important Public Positions within the Meaning of the Act on Preventing Money Laundering and Terrorist Financing (610/2019): Defines the criteria for important public positions in the context of the Anti-Money Laundering and Terrorist Financing Act.
  8. Chapter 32, 34a, and 46 of the Penal Code: Contains provisions related to money laundering, terrorist financing, and related offenses.

Specific Regulatory Texts

Finland has specific regulatory texts related to various sectors:

  1. Credit Institutions Act
  2. Investment Firms Act
  3. Mutual Funds Act
  4. Act on Payment Institutions
  5. Act on the Book-entry System and Clearing Operations
  6. Act on the Fulfilment of Certain Obligations of Finland as a Member of the United Nations and of the European Union
  7. Decrees related to authorisation applications and information appending
  8. Regulations and guidelines for preventing money laundering and terrorist financing

EU Funds Transfer Regulation and the Financial Supervisory Authority of Finland (FIN-FSA)

The EU Funds Transfer Regulation (Regulation (EU) 2015/847) obliges providers to report shortcomings identified in information accompanying funds transfers to the Financial Supervisory Authority of Finland (FIN-FSA).

Foreign payment service providers and issuers of electronic money providing services to Finland are required to appoint a central contact point under the AML Act.

EU Delegated Regulations

EU delegated regulations play an essential role in implementing and interpreting the EU regulations:

  1. Commission Delegated Regulation (EU) 2018/1108 on the criteria for the appointment of central contact points and their functions: Outlines the criteria for the appointment of central contact points and their functions.
  2. Commission Delegated Regulation (EU) 2019/758 on minimum action and type of additional measures for mitigating money laundering and terrorist financing risk in certain third countries: Lists measures for addressing risks from third countries where the money laundering or terrorist financing risk is high.
  3. Commission Delegated Regulation (EU) 2018/1110 on the implementation of group-wide AML/CFT policies in third countries: Provides guidelines for implementing group-wide Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) policies in third countries.