Financial Crime World

FINANCIAL SUPERVISORY AUTHORITY ISSUES NEW REGULATIONS ON ANTI-MONEY LAUNDERING AND TERRORIST FINANCING IN FINLAND

Helsinki, Finland - May 26, 2023

The Financial Supervisory Authority (FIN-FSA) has issued new regulations and guidelines on the prevention of money laundering and terrorist financing in Finland. The new regulations, which come into effect on June 26, 2023, aim to provide entities supervised by FIN-FSA with clear guidance on how to prevent and detect money laundering and terrorist financing.

New Regulations Reflect Evolving Nature of Money Laundering and Terrorist Financing

The new regulations and guidelines build on the partial reform of the Anti-Money Laundering Act (AML Act), which was passed in 2021. They introduce changes that reflect the evolving nature of money laundering and terrorist financing, including the use of digital currencies and other emerging technologies.

Key Changes Introduced by New Regulations

Some key changes introduced by the new regulations include:

  • More case-by-case discretion regarding the level of management from which a person may be designated for AML/CFT purposes. This allows entities to exercise more flexibility when determining who should be responsible for anti-money laundering and counter-terrorist financing (AML/CFT) tasks.
  • New requirements for the completion of verification of identity after the establishment of a customer relationship. Entities are now required to verify their customers’ identities in a more thorough manner, ensuring that they have accurate information about their clients.
  • The repeal of previous FIN-FSA standards and guidelines on customer due diligence, money laundering and terrorist financing risk factors, and simplified customer due diligence procedures. These changes aim to harmonize and improve the effectiveness of AML regulation in Finland.

Enhanced Efforts to Combat Money Laundering and Terrorist Financing

The new regulations and guidelines are expected to enhance Finland’s efforts to combat money laundering and terrorist financing, and to maintain the country’s reputation as a leader in financial regulation.