Title: Financial Crime and Terrorism Financing: A Growing Threat to Norway’s Prosperous Economy and How to Stay Compliant
In the idyllic and prosperous Scandinavian nation of Norway, financial crimes such as money laundering and terrorism financing are increasingly becoming a concern for authorities and financial institutions. Norway’s abundance of natural resources and highly developed economy make it an attractive target for financial criminals. Understanding the Norwegian AML/CFT landscape is crucial for businesses operating within the country.
Norway’s Heightened Focus on Combating Financial Crime
The Norwegian financial sector’s heightened focus on combating financial crime necessitates that businesses familiarize themselves with the country’s AML/CFT regulatory authorities and requirements. This includes implementing robust compliance programs and understanding how to navigate Norwegian financial authorities.
Norway’s Primary AML Regulator: Finanstilsynet
Norway’s main AML regulator, Finanstilsynet, was established in 1986 to promote financial stability and functional markets. Its primary mission is to ensure that supervised financial institutions comply with AML/CFT legislation. Finanstilsynet supervises various financial institutions, including banks, insurance and credit companies, pension funds, accountants, and real estate agencies.
As a member of the EU’s Memorandum of Understanding on Cooperation, Finanstilsynet works with other regulatory bodies across the European Economic Area (EEA) and international partners to combat money laundering on a global scale.
Norway’s AML Regulations
Norway’s primary AML/CFT law, the Anti-Money Laundering Act, imposes risk-based record-keeping and reporting requirements on financial institutions.
Customer Due Diligence (CDD) and Ultimate Beneficial Ownership (UBO) checks are mandatory for all new customers.
Ongoing monitoring of customer financial activity is crucial to identify any suspicious behavior.
Norway is also addressing emerging risks from unbacked crypto-assets, stablecoins, and virtual asset service providers. These regulations will come into effect in 2024, as part of the EU’s Markets in Crypto Assets (MiCA) and Transfer of Funds Regulation (TFR).
Staying Compliant with Norway’s AML Regulations
To remain compliant, businesses must adhere to:
- Risk assessments: Conduct detailed risk assessments to identify potential money laundering and terrorist financing risks.
- Customer risk profiles: Establish accurate customer risk profiles based on thorough due diligence checks.
- Proportionate compliance responses: Deploy proportionate compliance responses based on the level of risk identified.
Effective AML compliance in Norway requires the following measures:
- Customer due diligence: Collect and verify customers’ basic information and identify the UBOs of corporate entities.
- Transaction screening: Examine transactions with high-risk counterparties or those associated with high-risk jurisdictions.
- Sanctions and watchlists: Screen against sanctions and watchlists, including individuals and organizations.
- Adverse media: Monitor adverse media sources for criminal risk.
Advanced AML Screening Technology
Employing advanced AML screening technology is vital in handling Norway’s evolving regulatory landscape and staying ahead of criminal threats. Ripjar’s Labyrinth Screening platform, for instance, offers real-time searches of thousands of global media sources and sanctions lists in over 20 languages. By focusing on extracting the most relevant risk data, Labyrinth helps firms quickly build accurate risk profiles and identify new risks as soon as they emerge.
Contact Ripjar to discuss how their platform can support your AML compliance needs in Norway.