Financial Crime World

Norway Toughens Anti-Money Laundering Laws: Banks Must Verify Customer Identity

Strengthening Financial Crime Prevention

In an effort to combat financial crimes, Norway’s anti-money laundering (AML) legislation has introduced stricter requirements for banks and other financial institutions to verify customer identity.

New Requirements for Customer Identification

According to Finanstilsynet, the country’s financial regulator, banks must obtain valid proof of identity from customers. This includes:

  • Norwegian and foreign passports
  • National ID cards
  • Driving licenses
  • Electronic proof of identity

Ongoing Monitoring and Documentation Updates

The AML legislation requires ongoing monitoring of customer relationships, ensuring that information is up-to-date at all times. This means that new documentation must be obtained when there is doubt about previously obtained information.

Compliance and Enforcement

Despite efforts to ensure compliance, some banks have failed to meet the requirements. However, a recent surge in enquiries suggests that several institutions are now taking steps to obtain the necessary documentation. Finanstilsynet has expressed awareness of the issue and is working to address it through its supervisory activity.

Setting Own Rules for Secure Customer Due Diligence

Banks may also set their own rules for secure customer due diligence, but these must not be stricter than the requirements outlined by Finanstilsynet. Personal appearance is typically required for identity verification, although a copy of the identity document can be submitted in combination with other measures.

There are no exceptions to the legal requirements, except for specific groups such as:

  • Minors
  • Wards
  • Elderly and seriously ill persons
  • Foreign nationals who may require more lenient documentation

Finanstilsynet’s circular provides further information on these exceptions.

Reducing Financial Crimes in Norway

The implementation of stricter AML laws aims to reduce the risk of financial crimes in Norway. By requiring banks to verify customer identity, the country is taking a proactive approach to combating money laundering and other illicit activities.