Norway Strengthens Private Banking Regulations with New Exemptions and Clarifications

In a bid to streamline its financial landscape, Norway has updated its private banking regulations to provide clearer guidelines for non-EEA entities offering investment services in the country.

Key Changes

The revised Country Manual Private Banking introduces new exemptions and clarifications to facilitate cross-border investment activities while ensuring compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) requirements. The key changes include:

• Exemptions for non-EEA entities: Third-country entities can now provide investment services without obtaining a licence, as long as they meet specific criteria.
  • Must be authorized in their home state
  • Have entered into a cooperation agreement with Norway’s Financial Supervisory Authority (NFSA)
  • Clients must be eligible counterparties, such as the Norwegian Bank’s Guarantee Fund
• Non-passported EEA entities do not benefit from this exemption
• Entities from countries listed by the Financial Action Task Force are not eligible for the exemption until their home state is removed from the list

Additional Updates

The revised manual also includes non-material updates and reworded comments throughout. To assist users in identifying the modifications, BRP has created a BT Short Comparison document which provides a side-by-side comparison of the previous and current versions of the Country Manual Private Banking.

Effective Date and Implementation

The updated regulations come into effect immediately, and financial institutions operating in Norway are advised to review and adapt their compliance frameworks accordingly. For more information or assistance with implementation, please contact BRP at info@brpsa.com.