Estonian Financial Supervision Authority Tightens Rules on Customer Identification
The Estonian Financial Supervision Authority has announced new regulations aimed at strengthening the fight against money laundering and terrorist financing in the country’s financial sector.
New Regulations for Credit Institutions and Financial Institutions
According to the new rules, credit institutions and financial institutions must identify customers participating in transactions or using services without being physically present in the same location. This can be done by verifying digital identification documents issued by the Republic of Estonia.
- The regulation applies when the transaction or service is related to a payment transfer within Estonia and the total amount per calendar month does not exceed €2000.
- Financial institutions must not provide third parties with authorization or authentication services regarding the identified person.
New Rules for Insurers and Insurance Brokers
The Estonian Financial Supervision Authority has also introduced new rules for insurers and insurance brokers, requiring them to verify the identity of beneficiaries under life assurance contracts after establishing a business relationship but no later than upon making a disbursement or commencement of realizing the rights of the beneficiary.
New Regulations for Providers of Currency Exchange Services
Providers of currency exchange services must identify and verify all persons participating in transactions if the amounts exchanged in cash exceed €6400 or an equal amount in another currency.
Goal of the Regulations
The new regulations aim to ensure that financial institutions and service providers are taking adequate measures to prevent money laundering and terrorist financing. The Estonian Financial Supervision Authority has emphasized the importance of identifying customers and verifying their identities as a crucial step in preventing these crimes.
“We want to ensure that our financial sector is safe and secure, and that we can trust the transactions taking place within it,” said a spokesperson for the Estonian Financial Supervision Authority. “These new regulations will help us achieve this goal by requiring financial institutions and service providers to take adequate measures to prevent money laundering and terrorist financing.”
About the Estonian Financial Supervision Authority
The Estonian Financial Supervision Authority is an independent public authority responsible for supervising and regulating financial institutions in Estonia. Its main goal is to ensure the stability and security of the financial sector, as well as to prevent money laundering and terrorist financing.
Note: The regulations come into effect immediately, with some exceptions allowing for a transition period of up to one year.