Financial Crime World

Navigating the Complex World of Finnish Banking Regulations

Finnish banks and financial institutions are subject to a multitude of laws and regulations aimed at ensuring transparency, fairness, and stability in the market. Understanding these requirements is crucial for avoiding potential penalties and maintaining a good reputation.

Key Legislation

The following acts provide the foundation for securities markets in Finland:

  • Securities Markets Act (746/2012): Sets out the framework for securities markets.
  • Unfair Business Practices Act (1061/1978): Prohibits unfair business practices.
  • Act on Trading in Financial Instruments (1070/2017): Regulates trading in financial instruments.
  • Act on Security Accounts (750/2012): Governs security accounts.

Additionally, the following acts aim to prevent money laundering and terrorist financing:

  • Act on Detecting and Preventing Money Laundering and Terrorist Financing (444/2017)
  • Consumer Credit Acts: Regulate consumer credit and mortgage broking.
  • Act on Registration of Certain Loan Providers and Credit Brokers: Requires certain loan providers and credit brokers to register with the authorities.

Additional Regulations

Finnish banks must comply with the following acts:

  • Act on Credit Institutions (610/2014): Regulates credit institutions, including banks.
  • Payment Services Act (290/2010): Governs payment services.
  • Act on Payment Institutions (297/2010): Regulates payment institutions.
  • Act on Foreign Payment Institutions’ Actions in Finland (298/2010): Sets out the rules for foreign payment institutions operating in Finland.

Entities undertaking debt collection must also comply with:

  • Act of Registration of Entities Undertaking Debt Collection (411/2018)
  • Act on Agent of Bondholders (574/2017): Governs the role of agents representing bondholders.

Corporate Regulations

Finnish banks and financial institutions are subject to the following corporate regulations:

  • Limited Liability Companies Act (624/2006): Regulates limited liability companies.
  • Partnerships Act (389/1988): Governs partnerships.
  • Act on Crowd Funding (734/2016): Regulates crowd funding.
  • Act on Investment Services (747/2012): Governs investment services.
  • Act on Alternative Fund Managers (162/2014): Regulates alternative fund managers.

European Directives and Regulations

Finnish banks must comply with the following European directives and regulations:

  • Bank Recovery and Resolution Directive (2014/59/EU)
  • Markets in Financial Instruments Directive (2004/39/EC)
  • Capital Requirements Regulation (Regulation (EU) 575/2013)
  • European Market Infrastructure Regulation (Regulation (EU) 648/2012)
  • Market Abuse Regulation (Regulation (EU) 596/2014)