Finland Strengthens Know Your Customer Policies to Combat Money Laundering and Terrorist Financing

HELSINKI, FINLAND - In an effort to bolster its anti-money laundering and terrorist financing efforts, Finland’s leading development finance institution, Finnfund, has updated its Know Your Customer (KYC) policies. The revised procedures aim to provide uniform customer due diligence processes in line with global financial markets and adhere to the country’s strict regulatory requirements.

Strengthening Customer Due Diligence

Finnfund’s updated KYC process involves a thorough risk assessment to identify potential risks associated with its operations. This assessment informs the level of customer identification required, which is then verified against sanctions lists and financial sanctions imposed by:

• The United Nations (UN)
• The United Kingdom (UK)
• The European Union (EU)
• The United States (US)

The institution also monitors customer relationships throughout their lifespan to ensure that identification information remains up-to-date. Enhanced customer due diligence is conducted for high-risk projects, involving specific checks and actions prior to establishing a relationship.

Independent Compliance Function Established

In 2022, Finnfund underwent an organizational change, resulting in the establishment of an independent compliance function. This dedicated team is responsible for:

• Whistleblowing
• Sanctions-related issues
• KYC due diligence verifications and monitoring

The senior compliance counsel serves as the person in charge of KYC and the contact person for money laundering affairs.

Staying Ahead of Regulatory Changes

Finnfund prioritizes ongoing training for its investment personnel and relevant support functions on anti-money laundering and terrorist financing. New employees also receive comprehensive KYC training to ensure that everyone is equipped to handle complex customer relationships effectively.

The institution’s commitment to robust KYC policies demonstrates its dedication to preventing money laundering and combating the financing of terrorism, while maintaining a strong customer relationship foundation. By staying ahead of regulatory changes, Finnfund upholds its reputation as a responsible development finance institution.