The entities we supervise are obliged to know their customers’ business, detect and examine suspicious transactions, and report any such suspicions to the FIN-FSA and the Financial Intelligence Unit. This directory contains instructions for supervised entities on customer due diligence and the prevention of money laundering and terrorist financing.
The prevention of money laundering and terrorist financing is based on international standards. Regulation seeks to ensure that uniform customer due diligence procedures are observed in the global financial markets. In this respect, an important role is played by the Financial Action Task Force on Money Laundering (FATF), an intergovernmental working group on the prevention of money laundering and terrorist financing, operating under the OECD. The EU’s Anti-Money Laundering Directives are based on FATF recommendations.
In Finland, the Financial Intelligence Unit operating in connection with the National Bureau of Investigation processes money-laundering reports submitted to it. Responsibility for the development of anti-money laundering legislation lies with the Ministry of Finance. It is our task to ensure that the procedures, risk management and internal control of supervised entities comply with statutory requirements.
A supervised entity or its employee may be sentenced to punishment for failure to comply with the obligations of customer due diligence and prevention of money laundering and terrorist financing under the Act on Detecting and Preventing Money Laundering and Terrorist Financing (Anti-Money Laundering Act, AML Act). A supervised entity may be guilty of negligent money laundering, for example, if it assists or counsels a customer in investment activities, establishment of shell companies or transfer of funds despite having weighty reasons to be suspicious of the customer's transactions.
The regulations and guidelines were prepared in accordance with the Anti-Money Laundering Act that entered into force on 1 August 2008 and provisions issued under the Act. Please note that the regulations and guidelines have not been completely updated, as they do not take account of the amendments to the Anti-Money Laundering Act that entered into force on 3 July 2017 (444/2017), or other provisions that were repealed or issued in connection with the overall reform of the Act, or the Act on amending the AML Act (406/2018) and other related acts that entered into force on 5 June 2018 and 1 May 2019. We are in the process of updating the regulations and guidelines.
Regulation on the prevention and detection of money laundering and terrorist financing
The Act on Preventing Money Laundering and Terrorist Financing (AML Act), Act on the Financial Intelligence Unit and certain other Acts on related topics were reformed on 3 July 2017. These measures implemented the fourth EU Anti-Money Laundering Directive and the second Funds Transfer Regulation ("2FTR").
Below is a list of links related to the topic:
- Act on Preventing Money Laundering and Terrorist Financing (444/2017) (in Finnish)
- Act on Financial Intelligence Unit (445/2017) (in Finnish)
Amendments were made to the AML Act and related Acts on 5 June 2018 and 1 May 2019.
Below is a list of links related to the topic:
- Act amending the Act on Preventing Money Laundering and Terrorist Financing (406/2018) (in Finnish)
- Government proposal to the Parliament on amending the Act on the Financial Supervisory Authority and on certain related Acts (HE 38/2018) (in Finnish)
- Act amending the Act on Preventing Money Laundering and Terrorist Financing (573/2019) (in Finnish)
- Hallituksen esitys eduskunnalle laiksi pankki- ja maksutilien valvontajärjestelmästä ja eräiksi siihen liittyviksi laeiksi (HE 167/2019) (in Finnish)
Application of the Funds Transfer Regulation has begun
The EU Funds Transfer Regulation (2015/847) applies as of 26 June 2017.
- Regulation (EU) 2015/847 of the European Parliament and of the Council on information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006.
The Funds Transfer Regulation obliges providers to notify the FIN-FSA of shortcomings identified by them in information accompanying funds transfers. The notifications are to be sent to the FIN-FSA by email at maksuntiedot(at)fiva.fi. Use this form in the notification (in Finnish).
The ESA guidelines contain more detailed instructions on how payment service providers should act in order to fulfil the requirements of Regulation 2015/847. The ESA guidelines are available on the ESA website.
The ESA guideline was implemented nationally by FIN-FSA regulations and guidelines 5/2018.
Commission supranational risk assessment
The first Commission supranational report on the EU internal market based on an AML/CFT risk assessment was published in July 2017.
The purpose of the report is to help EU member states to detect and analyse AML and CFT risks and to take mitigating measures. The report analyses risks within the financial sector and beyond, and examines new risk factors, such as virtual currencies and crowdfunding systems.
The report includes:
- a comprehensive risk mapping of key areas and a list of most widespread means of money laundering used by criminals
- recommendations to EU member states on how to address the risks identified, such as increase risk assessment or supervision of certain activities.
The Commission is committed to examine the options to enhance the operations and cross-border cooperation of Financial Intelligence Units. The Commission continues to monitor the development of money laundering and terrorist financing risks and will publish a new risk assessment at the latest in June 2019 and every other year thereafter.
- Commission press release 26 July 2017: Strengthened EU rules to tackle money laundering, tax avoidance and terrorism financing enter into force
- European Commission report: Report from the Commission to the European Parliament and the Council on the assessment of the risks of money laundering and terrorist financing affecting the internal market and relating to cross-border activities
- Commission staff working document Report from the Commission to the European Parliament and the Council on the assessment of the risks of money laundering and terrorist financing affecting the internal market and relating to cross-border activities
- Commission staff working document Report from the Commission to the European Parliament and to the Council on the assessment of the risks of money laundering and terrorist financing affecting the internal market and relating to cross-border situations
- Commission staff working document: On improving cooperation between EU Financial Intelligence units
Report on central contact point and proposal for regulatory technical standard
Finland has used the possibility provided by the fourth Anti-Money Laundering Directive to require foreign payment service providers and issuers of electronic money providing services to Finland, to appoint a central contact point (Chapter 3, section 14 of the AML Act).
The ESAs have submitted their report on the matter to the Commission to be adopted as a regulatory technical standard. The standard will establish the criteria for member states for determining the circumstances in which foreign payment service providers and issuers of electronic money may be required to appoint a central contact point. The standard also functions that may be required to be fulfilled by the central contact point in the host country in order to ensure regulatory compliance.
- COMMISSION DELEGATED REGULATION (EU) 2018/1108 of 7 May 2018 supplementing Directive (EU) 2015/849 of the European Parliament and of the Council with regulatory technical standards on the criteria for the appointment of central contact points for electronic money issuers and payment service providers and with rules on their functions
- Final report on Joint draft regulatory technical standards on the criteria for determining the circumstances in which the appointment of a central contact point pursuant to Article 45(9) of Directive (EU) 2015/849 is appropriate and the functions of the central contact point
- ESAs publish central contact point standards in fight against financial crime
- RTS on CCP to strengthen fight against financial crime
Report on compliance with group-level AML/CFT policy in so-called third countries
The ESAs have submitted to the Commission for approval their report on reporting entities' group-level AML/CFT policy in circumstances where they have a branch or subsidiary in a so-called third country, whose regulation prevents the implementation of group-wide policies and procedures.
- COMMISSION DELEGATED REGULATION (EU) 2019/758 of 31 January 2019 supplementing Directive (EU) 2015/849 of the European Parliament and of the Council with regard to regulatory technical standards for the minimum action and the type of additional measures credit and financial institutions must take to mitigate money laundering and terrorist financing risk in certain third countries
- RTS on the implementation of group wide AML/CFT policies in third countries
"Know your customer – prevent money laundering" newsletter
The purpose of the "Know your customer – prevent money laundering" newsletter is, among other things, to disseminate news about domestic and international regulatory initiatives related to anti-money laundering and countering the financing of terrorism (AML/CFT) and to provide a status update regarding domestic and international authorities specialising in this field. Newsletters are in Finnish.
International financial sanctions and changes therein are communicated at the website of the Ministry of the Interior.
Pekka Vasara, Head of Division, +358 9 183 5513