Financial Crime World

Money Laundering Techniques in Norway: A Growing Concern

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As Norway continues to attract foreign investment and maintain its reputation as a stable economy, money laundering has become a growing concern for financial institutions. According to Charlotte Ager, Head of Anti-Money Laundering (AML) at Bank Norwegian, criminals are becoming increasingly clever in their attempts to launder illegal funds.

The Process of Money Laundering

Money laundering is the process by which criminals make illegal funds appear legitimate, often through complex financial transactions. Ager’s department works tirelessly to prevent and uncover this activity, as well as counter-terrorism financing (CTF). “Where there is financial crime, there is a high chance of money laundering,” she emphasized.

Bank Norwegian’s Approach

Bank Norwegian has implemented robust risk management measures to stay ahead of the game. The bank assesses customer risk based on the likelihood of money laundering or terrorist financing and monitors all relationships on an ongoing basis. Electronic monitoring of transactions helps detect suspicious behavior, ensuring that illegal activities are quickly identified and reported to authorities.

Sophisticated Methods Used by Criminals

However, criminals have adapted by using increasingly sophisticated methods. According to Norway’s National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim), one common technique involves depositing illegal funds into friends or relatives’ accounts before withdrawing them in cash or purchasing luxury goods such as cars or electronics.

  • Deposit illegal funds into friends or relatives’ accounts
  • Withdraw funds in cash
  • Purchase luxury goods

The Rise of Cryptocurrency

The rise of cryptocurrency has also become a concern, with The Norwegian Police Security Service (PST) identifying a significant risk of fraud, loss of investment, and terrorist financing associated with its use. In response, Bank Norwegian has prohibited credit card transactions involving cryptocurrencies due to the lack of regulations from Norway’s Financial Supervisory Authority (Finanstilsynet).

Under Norwegian law, money laundering is defined in Section 337 of the Criminal Code as providing assistance in securing illegal funds or hiding their whereabouts. Ager stressed that it is essential for private entities like banks to do their part in preventing and uncovering crime, money laundering, and terrorist financing to maintain trust in society and among institutions.

Conclusion

As Norway continues to evolve as a financial hub, it is crucial that its banking institutions remain vigilant against the growing threat of money laundering. By staying informed about local guidelines, regulatory frameworks, and trends, Bank Norwegian and other financial institutions can work together to ensure the integrity of the financial system and protect the economy from illegal activities.