Finland Tightens Belts on Anti-Money Laundering Regulations

Strengthening Financial Supervision in Finland

Finland’s Financial Supervisory Authority (FIN-FSA) has taken significant steps to intensify its supervision of anti-money laundering laws and regulations in the country. This move aims to prevent terrorist financing and ensure compliance with international financial sanctions.

Key Components of the New Strategy

• Stricter Customer Due Diligence Procedures: Supervised entities must maintain robust customer due diligence procedures to detect and report suspicious transactions.
• Suspicious Transaction Reporting: Entities must report suspicious transactions to the FIN-FSA and Finland’s Financial Intelligence Unit (FIU).
• Annual Review of Compliance: The FIN-FSA will review its strategy annually, with entities subject to ongoing supervision measures based on their level of risk.

International Standards and Best Practices

The regulations in Finland are based on international standards set by:

• Financial Action Task Force on Money Laundering (FATF): An intergovernmental working group operating under the Organisation for Economic Co-operation and Development (OECD).
• EU’s Anti-Money Laundering Directives: Drawing from FATF recommendations, ensuring uniform customer due diligence procedures across global financial markets.

Consequences of Non-Compliance

Entities found deficient in their obligations may face punishment under the Act on Detecting and Preventing Money Laundering and Terrorist Financing (Anti-Money Laundering Act). This includes:

• Fines: For non-compliance with customer due diligence requirements.
• Imprisonment: For employees who fail to comply with customer due diligence requirements.

Goal of the FIN-FSA Strategy

The authority’s primary objective is to prevent money laundering and terrorist financing in Finland while maintaining a robust and effective financial system.