Financial Crime World

Norway Cracks Down on Financial Crime: AML Regulator Finanstilsynet and Customer Due Diligence Requirements

Norway, known for its natural resources and prosperous economy, has become a target for financial criminals looking to exploit its thriving financial system. With the country ranking among the wealthiest in the world, Norway has seen an increase in financial crimes such as fraud, money laundering, and terrorist financing. In response, businesses operating in Norway must familiarize themselves with the country’s rigorous anti-money laundering (AML) and counter-financing of terrorism (CFT) landscape.

Finanstilsynet: Norway’s AML Regulator

Norway’s Financial Supervisory Authority, or Finanstilsynet, serves as the primary AML regulator. Established in 1986, Finanstilsynet’s mission is to ensure financial stability and well-functioning markets by enforcing AML legislation. The authority has jurisdiction over banks, financial institutions, insurance and credit companies, pension funds, accountants, and real estate agencies.

Collaboration with Global Regulatory Bodies

As a signatory to the EU’s Memorandum of Understanding on Cooperation, Finanstilsynet collaborates with regulatory bodies across the European Economic Area (EEA) and the globe in the global fight against money laundering.

The Norwegian Anti-Money Laundering Act

The main AML/CFT law in Norway is the Act Relating to Measures to Combat Money Laundering and Terrorist Financing, also known as the Anti-Money Laundering Act. This legislation requires financial institutions to apply risk-based record-keeping and reporting strategies, as well as customer due diligence (CDD) checks and ultimate beneficial ownership (UBO) identification for new customers.

Norway’s Adherence to AML Guidelines

Norway adheres to the FATF and AMLD guidelines, including conducting risk assessments, establishing customer risk profiles, and implementing a proportionate compliance response based on the level of risk.

Best Practices for AML Compliance in Norway

To be successful in Norway’s AML compliance landscape, firms should:

  1. Implement customer due diligence protocols: Establish the identities of their customers, including ultimate beneficial ownership for corporate entities.
  2. Screen customer transactions: Monitor transactions for unusual activities involving high-risk counterparties, jurisdictions, and transaction amounts.
  3. Utilize sanctions and watchlists: Avoid dealings with prohibited entities and individuals.
  4. Review adverse media sources: Identify potential risks, such as news stories, social media content, and forums.

Staying Updated on Regulatory Changes and Screening Solutions

With the evolving global risk landscape, it is crucial for firms to stay updated on regulatory changes and implement screening solutions capable of capturing a vast amount of risk data while minimizing false positives.

Ripjar’s Labyrinth Screening Platform

Ripjar’s Labyrinth Screening platform, powered by next-generation machine learning technology, offers real-time searches of thousands of global media sources, news articles, and sanctions and watchlists in over 20 languages, enabling firms to build accurate and effective risk profiles quickly and identify new risks as soon as they emerge.

Contact Ripjar to discuss how their solutions can help your firm meet Norway’s AML compliance requirements.