Financial Crime World

Financial Crime in Norway: What You Need to Know

Norway’s thriving economy has made it a target for financial criminals seeking to exploit its financial system. In recent years, the country has been hit by several high-profile fraud cases and money laundering scandals, prompting authorities to tighten anti-money laundering (AML) and counter-terrorist financing (CFT) regulations.

The Financial Supervisory Authority of Norway (FSA)

At the forefront of Norway’s AML/CFT efforts is the Financial Supervisory Authority of Norway (FSA), also known as Finanstilsynet. Established in 1986, Finanstilsynet ensures that financial institutions comply with AML legislation by conducting on-site compliance inspections and implementing risk-based AML/CFT regulations.

The Act Relating to Measures to Combat Money Laundering and Terrorist Financing

Norway’s main AML/CFT law is the Act Relating to Measures to Combat Money Laundering and Terrorist Financing, which imposes record-keeping and reporting requirements on financial institutions. Norway has also implemented EU anti-money laundering directives (AMLD) in its domestic legislation, including measures set out in the Sixth Anti-Money Laundering Act (6AMLD).

Compliance Requirements

To comply with AML regulations in Norway, businesses must:

  • Conduct risk assessments to establish customer risk profiles
  • Deploy a proportionate compliance response depending on the level of risk
  • Implement customer due diligence, transaction screening, sanctions checks, and adverse media screening

This includes:

  • Collecting identifying information from customers
  • Screening transactions for signs of money laundering
  • Checking against sanctions lists and watchlists
  • Monitoring customers’ financial activity to identify suspicious behavior
  • Conducting adverse media screening to reveal criminal risk through news stories and other forms of media

Effective Compliance Solutions

To stay ahead of compliance obligations, businesses operating in Norway must implement a screening solution capable of capturing a vast amount of risk data while minimizing false positive alerts. Ripjar’s Labyrinth Screening platform is designed to meet AML compliance challenges in jurisdictions around the world, including Norway, by providing real-time searches of global media sources and sanctions lists.

Conclusion

Financial crime is a significant threat in Norway, and businesses operating in the country must be aware of the risks and take steps to comply with AML regulations. By understanding Norway’s AML/CFT landscape and implementing effective compliance solutions, businesses can reduce their risk exposure and contribute to the country’s efforts to combat financial crime.