Financial Crime World

Financial Crime Risk Management Frameworks in Finland: Strengthening Anti-Money Laundering Efforts

Finland has made significant strides in fortifying its financial crime risk management frameworks, aligning with European Union regulations to prevent money laundering and terrorist financing. The Ministry of Finance plays a pivotal role in developing anti-money laundering (AML) and combating the financing of terrorism (CFT) legislation.

Directives and EU-Level Regulations

Finland has implemented several directives and regulations to combat financial crime. Notably, Directive (EU) 2018/843 amends Directive (EU) 2015/849 on the prevention of money laundering or terrorist financing. This directive requires financial institutions to implement enhanced customer due diligence measures and report suspicious transactions.

  • Directive (EU) 2015/849: Requires financial institutions to implement enhanced customer due diligence measures and report suspicious transactions.
  • Regulation (EU) 2015/847: Obliges providers to notify the Finnish Financial Supervisory Authority (FIN-FSA) of shortcomings in information accompanying funds transfers.

National Legislation

Finland has enacted several laws to combat financial crime, including:

  • The Act on Preventing Money Laundering and Terrorist Financing (444/2017): Provides a framework for preventing money laundering and terrorist financing.
  • The Act on Financial Intelligence Unit (445/2017): Establishes the Finnish Financial Intelligence Unit to collect and analyze information related to financial crime.
  • The Act on the Bank and Payment Accounts Control System (571/2019): Regulates the bank and payment accounts control system.

Regulations and Guidelines

The FIN-FSA has issued regulations and guidelines to support the implementation of AML/CFT policies. These include:

  • Regulations and guidelines 2/2023 Preventing Money Laundering and Terrorist Financing: Provides guidance on preventing money laundering and terrorist financing.
  • Regulations and guidelines 4/2023 Customer due diligence related to compliance with sanctions regulation and national freezing orders: Offers guidance on customer due diligence for compliance with sanctions regulations and national freezing orders.

Penalties for Non-Compliance

Failure to comply with AML/CFT regulations can result in severe penalties, including fines and imprisonment. The Penal Code (39/1889) outlines the consequences of money laundering and terrorist financing offenses.

Finland’s efforts to strengthen its financial crime risk management frameworks demonstrate its commitment to combating money laundering and terrorist financing.