Financial Crime World

Title: Norwegian Businesses Brace for Stricter AML Regulations: A Guide for Compliance

Overview

Oslo, Norway - In the Nordic business landscape, adhering to anti-money laundering (AML) regulations has become a priority for financial institutions and other designated businesses in Norway. The Norwegian AML Act mandates strict compliance from various entities, ensuring they mitigate risks of money laundering and terrorist financing. In this comprehensive guide, we cover the key requirements every business needs to meet to remain compliant.

Which Entities are Subject to the Norwegian AML Act?

The Act applies to several types of businesses:

  • Banks and credit institutions
  • Financing institutions
  • The central bank of Norway
  • E-money institutions
  • Undertakings engaged in foreign exchange activities
  • Payment service undertakings
  • Investment firms
  • Management companies for securities funds
  • Insurance undertakings
  • Undertakings engaged in deposit activities
  • Managers of alternative investment funds

Risk Assessments: Understanding Your Business and Its Risks

Businesses must evaluate their specific money laundering and terrorist financing risks, considering the following factors:

  • Business nature and size
  • Products, services, and customer relationships
  • Customer types and groups
  • Geographical location

Additional Requirements Under the Norwegian AML Act

Beyond risk assessments, businesses must strictly adhere to the following measures:

Develop Robust Internal Procedures

  1. Update procedures to mitigate identified risks and AML Act compliance.
  2. Implement Customer Due Diligence (CDD) measures and ongoing monitoring.
  3. Monitor customer relationships consistently, including transactions and business/risk profiles.

Record-keeping

Maintain records and documents for at least 5 years after termination or completion of a customer relationship or transaction.

Internal Controls: Establishing a Strong Compliance Infrastructure

Depending on your business size and nature, ensure you have the necessary internal controls, such as:

  • Appointing a Compliance Officer
  • Conducting employee screening
  • Independent compliance monitoring
  • Regular employee training on AML requirements

Stay Informed, Stay Compliant

As the AML landscape evolves, Norwegian businesses must remain vigilant and responsive to meet the regulatory challenges. By putting adequate measures in place, businesses can not only secure their reputation but also help maintain the integrity of Norway’s financial sector.