Politically Exposed Persons Due Diligence in Norway: A Comprehensive Guide

Norway, one of the wealthiest economies in the world, has been a target for financial criminals seeking to exploit its financial system. Recent financial scandals have drawn attention to Norway’s anti-money laundering (AML) and counter-terrorism financing (CFT) regulatory requirements.

The Need for Increased Focus on AML/CFT Compliance

In 2020, DNB ASA, Norway’s largest financial services group, was fined NOK 400 million ($48.1 million) for systematic AML compliance violations. In response, Norway has increased its focus on combating financial crime, requiring businesses operating in the country to be familiar with its AML/CFT landscape and implement a suitable regulatory compliance program.

The Role of Finanstilsynet

Norway’s primary AML regulator is Finanstilsynet, which supervises banks and financial institutions, including insurance and credit companies, pension funds, accountants, and real estate agencies. Finanstilsynet develops and implements financial legislation in conjunction with the Norwegian government and conducts on-site compliance inspections. Financial institutions must demonstrate competency criteria and obtain a licence from Finanstilsynet to operate in Norway.

The Anti-Money Laundering Act

Norway’s main AML/CFT law is the Act Relating to Measures to Combat Money Laundering and Terrorist Financing, also known as the Anti-Money Laundering Act. The act imposes risk-based record-keeping and reporting regulations on financial institutions, including customer due diligence (CDD) and ultimate beneficial ownership (UBO) checks.

EU Implementations

As part of the European Economic Area (EEA), Norway implements the EU’s anti-money laundering directives in its domestic AML/CFT legislation. Norway has updated the Anti-Money Laundering Act with relevant regulatory detail, including measures set out in the latest AMLD, the Sixth Anti-Money Laundering Directive.

Compliance Requirements

To comply with AML regulations in Norway, financial institutions must conduct risk assessments to establish customer risk profiles and deploy a proportionate compliance response. This includes:

Customer Due Diligence: Establishing accurate identities of customers by collecting identifying information and seeking to establish ultimate beneficial ownership.
Transaction Screening: Screening customer transactions for signs of money laundering, including transactions with high-risk counterparties or jurisdictions.
Sanctions and Watchlists: Screening customers against sanctions targets and politically exposed persons (PEPs).
Adverse Media: Screening customers against adverse media sources on an ongoing basis to identify criminal risk.

Effective Compliance Solutions

To stay ahead of compliance obligations in Norway and beyond, it is critical to implement a screening solution capable of capturing vast amounts of risk data while minimizing false positive alerts. Ripjar’s Labyrinth Screening platform has been designed to meet AML compliance challenges globally, providing real-time searches of thousands of global media sources, including news articles and sanctions and watchlists, in over 20 languages.