The entities we supervise are obliged to know their customers’ business, detect and examine suspicious business operations, and report any such operations to Finland's Financial Intelligence Unit, the national anti-money laundering unit. This directory contains instructions to supervised entities for customer due diligence and 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 global financial markets comply with harmonised customer due diligence procedures. An important role is occupied here by the intergovernmental working group on the prevention of money laundering and terrorist financing, the Financial Action Task Force on Money Laundering (FATF) operating under 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 deals with reports submitted to it on suspicious transactions. Responsibility for the development of anti-money laundering legislation lies with the Ministry of the Interior. The Financial Supervisory Authority, in turn, is responsible for ensuring that the procedures, risk management and internal control of supervised entities meet 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). A supervised entity may become guilty of negligent money laundering, for example, if it assists or counsels a customer in connection with investment activities, establishment of fictitious companies or transfer of funds, although there are weighty reasons to be suspicious of the customer's business.
The regulations and guidelines have been 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 revoked or issued in connection with the overhaul of the Act. The FIN-FSA will update the regulations and guidelines in the course of 2018.
Customer identification and customer due diligence