Financial Crime World

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Finnish Financial Supervisory Authority’s Assessment of Inherent Risks Related to Money Laundering

The Finnish Financial Supervisory Authority (FIN-FSA) has released a summary report regarding their assessment of inherent risks related to money laundering in various sectors within Finland’s financial industry. The report outlines the FIN-FSA’s methodology for risk assessment, lists the sectors supervised by them, and assigns a risk rating to each sector.

Risk Assessment Methodology

The FIN-FSA uses a four-tier risk rating scale consistent with the European Banking Authority’s scale:

  • Very Significant Risk
  • Significant Risk
  • Moderately Significant Risk
  • Less Significant Risk

Sectors Supervised by FIN-FSA

The following sectors are supervised by the FIN-FSA:

Payment Service Providers (Excl. Money Remittance)

  • Risk Rating: Very Significant Risk (47 entities)
  • Description: This sector includes payment service providers that do not provide money remittance services.

Money Remittance (Excl. Other Payment Services)

  • Risk Rating: Very Significant Risk (11 entities)
  • Description: This sector includes companies that specialize in providing money remittance services, excluding other payment services.

Virtual Currency Service Providers

  • Risk Rating: Very Significant Risk (5 entities)
  • Description: This sector includes companies that provide virtual currency services.

Deposit Banks

  • Risk Rating: Moderately Significant Risk (222 entities)
  • Description: This sector includes banks that provide deposit accounts and other banking services.

Other Credit Institutions

  • Risk Rating: Moderately Significant Risk (19 entities)
  • Description: This sector includes credit institutions that are not deposit banks.

Investment Service Providers

  • Risk Rating: Moderately Significant Risk (56 entities)
  • Description: This sector includes companies that provide investment services, such as brokerage and portfolio management.

Fund Management Companies

  • Risk Rating: Less Significant Risk (36 entities)
  • Description: This sector includes companies that manage funds on behalf of investors.

Crowdfunding Companies

  • Risk Rating: Very Significant Risk (11 entities)
  • Description: This sector includes companies that provide crowdfunding services, allowing individuals to invest in projects or businesses.

Alternative Investment Fund Managers

  • Risk Rating: Moderately Significant Risk (119 entities)
  • Description: This sector includes managers of alternative investment funds, such as private equity and hedge funds.

Life Insurance Companies

  • Risk Rating: Less Significant Risk (10 entities)
  • Description: This sector includes companies that provide life insurance policies.

Non-Life Insurance Companies

  • Risk Rating: Moderately Significant Risk (34 entities)
  • Description: This sector includes companies that provide non-life insurance policies, such as property and casualty insurance.

Housing Loan Brokers

  • Risk Rating: Less Significant Risk (2 entities)
  • Description: This sector includes companies that broker housing loans on behalf of banks or other financial institutions.

Next Steps

The FIN-FSA will continue to assess sector-specific risk factors, including data collection and collaboration with industry experts. Updated national risk assessments will be published separately.