Estonia Adopts Revamped Money Laundering Prevention Act
Strengthening Defenses Against Financial Crime and Improving Transparency
Tallinn, June 18, 2020 - The Estonian Parliament has approved a package of amendments to the Money Laundering and Terrorist Financing Prevention Act, aimed at strengthening the country’s defenses against financial crime and improving its compliance with European Union anti-money laundering regulations.
Key Changes
- A more robust definition of money laundering
- Enhanced whistleblower protection
- Creation of a legal framework for a register of bank accounts, allowing faster information sharing between banks and the Financial Intelligence Unit
- Improved definition of beneficial owners, enhancing data quality in the Business Register
- Clarified cooperation and information exchange requirements between obligated entities, streamlining due diligence procedures
- Provisions requiring banks to provide clear explanations and justifications for account closures
- Establishment of a list of politically exposed persons in Estonia, subjecting them to enhanced money laundering prevention requirements
Minister’s Comments
“Estonia is not a haven for money launderers,” said the Minister of Finance, Martin Helme. “We will do everything possible to ensure that our economic environment remains honest and transparent.”
Helme emphasized the importance of striking a balance between combating financial crime and avoiding unnecessary burdens on ordinary citizens and small businesses.
Whistleblower Protection
The amendments increase protection for whistleblowers and specify requirements for certain professionals to consider anti-money laundering measures in their work.
Future Evaluation
The efficient implementation of this legislation is crucial, as Estonia will face a new evaluation by Moneyval in autumn 2021. The assessment will examine how effectively the country applies its anti-money laundering laws and regulations, as well as its institutions’ capacity to combat financial crime.
Conclusion
Estonia’s revamped Money Laundering Prevention Act demonstrates the country’s commitment to strengthening its defenses against financial crime and improving transparency. With these changes, Estonia is poised to maintain its reputation as a responsible and transparent economic environment.