Financial Crime World

Finland’s Unwavering Commitment to Preventing Financial Crimes: A Look into Finland’s Regulatory Framework

Title: Finland Cracks Down on Financial Crime with Robust Prevention Measures

Finland, a Nordic nation renowned for its transparency and robust regulatory framework, is at the forefront of the fight against financial crime. The Finnish Financial Supervisory Authority (FIN-FSA) plays a pivotal role in preventing money laundering and terrorist financing within the financial sector. In this article, we explore the current provisions, regulations, and guidelines that fortify Finland’s stance against illicit financial activities.

Current Provisions

Finland’s regulatory bodies, including FIN-FSA, have taken extensive steps to ensure compliance and mitigate risks. The Finnish legislation includes numerous provisions to prevent money laundering and terrorist financing, following the European Directive 2015/849 on the prevention of the use of the financial system for money laundering or terrorist financing.

  • European Directive 2015/849 (Fifth Anti-Money Laundering Directive): Transposed into Finnish law through various acts, including the Finnish Anti-money Laundering Act (no. 1468/2016) and amendments to the Finnish Criminal Code (no. 776/1995).

Guidelines and Regulations

The FIN-FSA plays a crucial role in safeguarding the Finnish financial system against money laundering and terrorist financing. some of the key guidelines and regulations set by the FIN-FSA are:

  • The General Guidelines on Prevention of Money Laundering and Terrorist Financing: Provide a more in-depth understanding of the requirements for countering money laundering and terrorist financing and are essential for all supervised entities.
  • Recommendations for Finnish Credit Institutions and Certain Non-Financial Professions: Establish specific expectations for financial institutions and non-financial professions in preventing money laundering and terrorist financing.
  • Customer Due Diligence Implementation Guides: Offer practical advice on how financial institutions and their employees can effectively implement customer due diligence measures.
  • Guidelines for Internal Controls for Businesses Suspected of Money Laundering: Outline the role of internal controls in addressing money laundering risks and responsibilities for different functions.

Ongoing Efforts

The FIN-FSA’s dedication to combating financial crime does not stop at the domestic level. Collaboration with international partners is crucial in the ever-evolving battle against financial crimes. Finland regularly participates in European Union initiatives, such as the European Banking Authority, and maintains partnerships with foreign financial supervisory authorities.

Conclusion

Finland’s unwavering commitment to preventing financial crimes is evident through its robust regulatory framework and the efforts of its financial supervisory authorities like the FIN-FSA. This commitment to transparency and compliance serves as a powerful deterrent for would-be offenders and an essential cornerstone of trust within Finland’s financial sector.