GREENLAND TIGHTENS BELT ON ANTI-MONEY LAUNDERING AND COMBATING FINANCIAL CRIME
In a move to bolster financial integrity and prevent illicit transactions, Greenland has strengthened its anti-money laundering (AML) and combating the financing of terrorism (CFT) measures. The nation’s efforts are aimed at curbing the flow of dirty money through its financial system and aligning with international standards.
GREENLAND’S AML/CFT FRAMEWORK
Effective since 2020, Greenland’s AML/CFT framework is designed to detect, prevent, and report suspicious transactions that may be related to money laundering or terrorism financing. The framework requires all financial institutions in the country to implement robust customer due diligence measures, monitor high-risk transactions, and maintain detailed records of client information.
Key Features:
- Customer Due Diligence: Financial institutions must conduct thorough background checks on clients
- Transaction Monitoring: Institutions must monitor transactions for suspicious activity
- Record Keeping: Detailed records of client information must be maintained
MACROECONOMIC IMPACT OF ILLEGAL FINANCIAL FLOWS
Illicit financial flows pose a significant threat to Greenland’s economy, with estimates suggesting that these activities can drain tens of millions of dollars from the nation each year. The government has acknowledged that tackling this issue is essential to maintaining economic stability and preventing the erosion of trust in its financial institutions.
GREENLAND’S APPROACH TO AML/CFT
Greenland’s approach to AML/CFT emphasizes a risk-based framework, where financial institutions are required to assess and manage the risks associated with their customers and transactions. This includes identifying high-risk jurisdictions, monitoring for suspicious activity, and reporting any findings to the relevant authorities.
Key Principles:
- Risk-Based Approach: Financial institutions must assess and manage risks associated with clients and transactions
- High-Risk Jurisdictions: Institutions must identify and monitor transactions from high-risk jurisdictions
- Suspicious Activity Reporting: Any suspicious activity must be reported to the relevant authorities
PARTNERSHIP WITH INTERNATIONAL ORGANIZATIONS
Greenland has collaborated closely with international organizations, such as the Financial Action Task Force (FATF), to ensure that its AML/CFT framework is in line with global standards. The nation has also received technical assistance from the International Monetary Fund (IMF) and other organizations to enhance its capacity to combat money laundering and terrorism financing.
GREENLAND’S STRATEGY TO PREVENT AND COMBAT FINANCIAL CRIME
Greenland’s strategy aims to prevent financial crime by promoting a culture of compliance within its financial institutions. The nation has introduced various initiatives, including training programs for financial sector employees, awareness campaigns for the general public, and strengthened enforcement mechanisms to deter illicit activities.
Key Initiatives:
- Training Programs: Employees of financial institutions must receive regular training on AML/CFT
- Awareness Campaigns: Public awareness campaigns aim to educate citizens about the risks of financial crime
- Enforcement Mechanisms: Strengthened enforcement mechanisms are in place to deter illicit activities
GREENLAND’S COMMITMENT TO AML/CFT
Greenland is committed to maintaining a robust AML/CFT framework that aligns with international standards. The nation recognizes that combating financial crime requires continued cooperation with other countries and international organizations, as well as ongoing efforts to improve its own capacity and expertise in this area.