Norway’s Strides in Implementing Anti-Money Laundering Laws: A Mixed Bag
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Norway has made significant progress in implementing anti-money laundering laws, but still lags behind in certain areas. The country received ratings of “partially compliant” or “largely compliant” on most of the 40 recommendations evaluated by the Financial Action Task Force (FATF).
Assessing Risk and Applying a Risk-Based Approach
Norway was found to be partially compliant with Recommendation R.1, which requires countries to assess the risk of money laundering and apply a risk-based approach to combating it. While the country has established a risk assessment framework, it lacks a clear and comprehensive methodology for identifying high-risk sectors and individuals.
Recommendations:
- Establish a clear and comprehensive methodology for identifying high-risk sectors and individuals
- Implement a risk-based approach to combating money laundering
National Cooperation and Coordination
The country was largely compliant with Recommendation R.2, which emphasizes the importance of national cooperation and coordination in preventing money laundering. Norway’s financial intelligence unit (FIU) plays a key role in coordinating efforts among law enforcement agencies, regulators, and other stakeholders.
Recommendations:
- Strengthen national cooperation and coordination mechanisms
- Enhance information sharing between different sectors and authorities
Money Laundering Offence
Norway scored well on Recommendation R.3, which requires countries to have a money laundering offence that is punishable by effective, proportionate, and dissuasive sanctions. The country’s criminal code includes provisions that make money laundering a criminal offence, but critics argue that the penalties are not always sufficient.
Recommendations:
- Ensure that penalties for money laundering are always sufficient
- Strengthen laws and regulations to prevent money laundering
Confiscation and Provisional Measures
Norway was largely compliant with Recommendation R.4, which requires countries to have confiscation and provisional measures in place to seize assets related to money laundering. The country’s laws allow for the seizure of assets suspected of being linked to money laundering, but there is room for improvement in terms of ensuring that these measures are effective.
Recommendations:
- Ensure that confiscation and provisional measures are effective
- Strengthen laws and regulations to prevent money laundering
Other Areas of Improvement
Norway was non-compliant with Recommendation R.9, which requires countries to abolish financial institution secrecy laws that could hinder the fight against money laundering and terrorist financing.
Recommendations:
- Abolish financial institution secrecy laws
- Implement measures to regulate non-profit organisations
Additionally, Norway was partially compliant with Recommendations R.10-R.15, which require countries to have customer due diligence measures in place, as well as measures to address the risks associated with new technologies and innovative payment systems.
Recommendations:
- Implement customer due diligence measures
- Address the risks associated with new technologies and innovative payment systems
In conclusion, Norway has made significant progress in implementing anti-money laundering laws, but there are still areas where improvement is needed. The country’s financial sector is considered to be relatively stable, but the fight against money laundering and terrorist financing is an ongoing effort that requires continued vigilance and cooperation among stakeholders.