Norway Cracks Down on Money Laundering and Terrorist Financing: A Global Effort
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Norway has implemented stringent anti-money laundering (AML) laws to combat money laundering and terrorist financing, with far-reaching implications for financial institutions worldwide.
The Problem of Money Laundering and Terrorist Financing
Experts explain that proceeds from criminal acts can be laundered by obscuring the origin of funds, while terrorism can be financed by both legal and illegal sources. To prevent this, AML legislation requires banks and other obliged entities to conduct thorough customer due diligence and report suspicious transactions to Økokrim (the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime).
Regulatory Framework
The Financial Supervisory Authority of Norway, Finanstilsynet, plays a crucial role in ensuring compliance with AML regulations. Failure to comply can result in fines, and in serious cases, entities may be reported to the police.
Shared Responsibility
Responsibility for combating money laundering and terrorist financing is shared among several Norwegian ministries, agencies, and authorities, including:
- Ministry of Justice
- Ministry of Foreign Affairs
- Ministry of Finance
- Police Directorate
- Økokrim (Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime)
- Norwegian Police Security Service
- Finanstilsynet
Cross-Disciplinary Efforts
A cross-disciplinary contact forum has been established to ensure coordinated efforts against money laundering, terrorist financing, and financing of weapons of mass destruction. The Financial Intelligence Unit (FIU) handles reports on suspicious transactions and forwards relevant information to the police, administrative bodies, and other countries’ supervisory bodies.
Online Resources
The website hvitvasking.no provides information on the work against money laundering and terrorist financing, including:
- Reporting of suspicious transactions
- UN sanctions lists
- Asset freeze decisions
The Financial Action Task Force (FATF) has issued 40 recommendations that member countries must comply with to combat money laundering and terrorist financing.
Staying Updated
Finanstilsynet has established an e-mail alerting service for financial institutions, providing information on:
- Sanctions lists
- Asset freeze decisions
- International guidance papers
This service helps financial institutions stay up-to-date with statements from the UN, FATF, and EU.
A Model for Other Countries
As Norway continues to work towards a cashless society, its AML laws serve as a model for other countries seeking to combat money laundering and terrorist financing.