Compliance With Anti-Money Laundering Finland Regulations
Request a demo of our AML compliance tools to find out how we can ensure your organization remains compliant with Finland’s AML regulations.
Request A DemoFinland has one of the largest per capita economies in the European Union and attracts a range of foreign business interests. As a trade hub, Finland also deals with threats to its financial system as criminals seek to exploit vulnerabilities to launder money or finance terrorist activities. In order to combat the threat posed by money laundering in Finland, the country has implemented strict anti-money laundering regulations, including requirements for financial institutions to implement internal AML/CFT compliance programs. Finland anti-money laundering regulations are overseen by the Financial Supervisory Authority (FSA), known in Finland as Finanssivalvonta (Fiva).
Banks, financial institutions, and other obligated entities in Finland should understand their AML obligations and how to comply with FSA Finland requirements.
Established in January 2009, the FSA is the primary financial regulatory authority in Finland and replaced the Banking Supervision Office. An independent regulatory organization, the FSA operates in conjunction with the Bank of Finland, and is headquartered in Finland’s capital, Helsinki. The FSA Finland’s stated objectives are to ensure the safe operation of Finland’s financial institutions, to protect participants in its financial markets, and to disseminate regulatory knowledge. In its supervisory role, the FSA provides oversight for:
The FSA works to combat money laundering in Finland and ensure compliance with the country’s AML rules and regulations. Finland’s primary article of AML/CFT legislation is the Act on Preventing Money Laundering and Terrorist Financing, also known as the Anti-Money Laundering Act. The legislation sets out provisions for detecting and preventing money laundering in Finland, including implementing suitable Know Your Customer (KYC), risk assessment, reporting, and training obligations.
As an EU member state, Finland is also obliged to enact financial legislation passed by the European Parliament. Accordingly, the Anti-Money Laundering Act incorporates the latest requirements of the EU’s anti-money laundering directives, and AML recommendations set out by the Financial Action Task Force (FATF).
Failure to comply with Finland’s anti-money laundering / CFT regulations can result in significant financial and criminal penalties.
Following FATF guidance, firms in Finland must take a risk-based approach to AML/CFT compliance. In practice, this means assessing their customers to establish the level of AML risk they present, and then deploying a proportionate AML response. In order to achieve effective, risk-based AML compliance, Finnish AML programs should feature the following measures and controls:
Request a demo of our AML compliance tools to find out how we can ensure your organization remains compliant with Finland’s AML regulations.
Request A DemoOriginally published 12 August 2021, updated 20 September 2024
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