Financial Crime World

FINLAND TIGHTENS KYC POLICIES IN RESPONSE TO GLOBAL SANCTIONS

Helsinki, Finland - In the wake of international sanctions imposed on Russia following its invasion of Ukraine, Finnish financial institutions are ramping up their Anti-Money Laundering (AML) controls and focusing more intently on “know your customer” (KYC) policies to ensure compliance with regulations.

FINNISH INSURERS UNDER INCREASED SCRUTINY

Finnish insurance companies are required by law to comply with regulations related to AML, CFT, and KYC. These regulations aim to prevent financial crimes such as money laundering, fraud, and terrorist financing. By implementing advanced KYC controls, insurers can ensure they are complying with these regulations.

BENEFITS OF ADVANCED KYC CONTROLS

Advanced KYC controls offer several benefits for Finnish insurance companies:

  • Risk-based approach: Advanced KYC controls enable insurers to identify and assess the risk of their customers, allowing them to implement additional measures where needed to prevent financial crime.
  • Prevention of fraud: Effective KYC controls support insurers in preventing fraud by verifying customer identities and detecting suspicious activity.
  • Reputation management: Robust KYC controls reduce the likelihood of reputation damage due to undetected financial crime.

CUSTOMER RISK ASSESSMENT KEY TO EFFECTIVE AML CONTROLS

Efficient customer risk assessment is critical for Finnish insurers, particularly in cases where customers interact mostly online. Insurers use a combination of qualitative and quantitative factors to assess customer risks, including:

  • Effective assessment of customer information: Data analysis using AI and data analytics helps identify suspicious activity.
  • Customer scoring system: A scoring system determines the level of risk associated with each customer based on various risk factors.
  • Risk-based due diligence: High-risk customers undergo enhanced due diligence processes.

By implementing these measures, Finnish insurance companies can effectively manage AML risks, prevent financial crimes, and protect their reputation.