Title: Norway Makes Significant Progress in Enhancing Anti-Money Laundering and Counter-Terrorist Financing Measures, According to FATF Report

Subtitle: First Regular Follow-Up Report Highlights Advanced Technicial Compliance

The Financial Action Task Force (FATF) has recently published a report on Norway’s progress in enhancing its anti-money laundering (AML) and counter-terrorist financing (CTF) measures, detailing substantial improvements in technical compliance with the FATF Recommendations.

Background

• Adoption of Mutual Evaluation Report (MER) in 2014
• Analysis of improvements addressing deficiencies in Recommendations 6 and 16
• Examination of responses to new requirements under Recommendation 15

Findings from the Mutual Evaluation Report

At the time of assessment in February 2019, Norway’s technical compliance ratings across various Recommendations were:

| Recommendation | Norway’s Rating | | R.1, R.2, R.4, R.5, R.9 | Compliant (C) | | R.3, R.6, R.7, R.8, R.10 | Partially Compliant (PC) | | R.11, R.12, R.13, R.14, R.15, R.16, R.17, R.18, R.19, R.20 | Conditional (C) | | R.21, R.22, R.23, R.24, R.25, R.26, R.27, R.28, R.29, R.30, R.31, R.32, R.33, R.34, R.35, R.36, R.37, R.38, R.39, R.40 | Low Compliant (LC) |

Progress Towards Improving Technical Compliance

Norway has made significant strides in addressing deficiencies relating to Recommendations 6 and 16:

Recommendation 6

• Previously Partially Compliant (PC)
• Domestic, UNSCR 1373-based asset freezing mechanism shifted from the Criminal Procedure Act (CPA) to the Police Act (PA)
  • Increased independence
  • Improved processes

Recommendation 16

• Shifted from Partially Compliant (PC) to Compliant (C)
• Enacted the EU Regulation on information accompanying transfers of funds

Improvements in Response to New Requirements

In response to changes in Recommendation 15, Norway has made noteworthy progress in its regulatory framework for virtual assets and virtual asset service providers (VASPs):

• New Large Compliant (LC) rating
• Requirements on identifying, assessing, and mitigating ML/TF risks
• Licensing/registration of VASPs
• Adequate supervision

Conclusion

Norway’s commitment to strengthening its AML/CTF measures is highlighted in the FATF report. Recommendations 6 and 16 have been re-rated due to substantial progress, while further improvements are needed with regards to new requirements under Recommendation 15.

For more information about the FATF, visit their website at www.fatf-gafi.org.

Disclaimer

The information provided in this report does not prejudice the status of or sovereignty over any territory, nor does it affect delimitation of international frontiers and boundaries, or the name of any territory, city, or area.