Supervision release 7 February 2023 – 7/2023

A summary of the FIN-FSA’s risk assessment of money laundering and terrorist financing for capital market participants has been published

The Financial Supervisory Authority (FIN-FSA) has published a summary of the sector-specific risks of money laundering and terrorist financing (ML/TF) for investment firms, management companies and alternative investment fund managers (AIFM). The sector-specific risk assessment builds on the FIN-FSA’s inherent risk assessment of money laundering and terrorist financing, which was published in April 2022.

According to the FIN-FSA’s assessment, capital market participants are exposed at the sector level to a moderately significant (2/4) overall risk of money laundering and a less significant (1/4) overall risk of terrorist financing.

In the risk assessment, shortcomings were identified in the firms’ risk-based approach to their activities, referring to the procedures applied by the firms to identify, assess and understand ML/FT risks to which they are exposed and to take actions, also in practice, that are commensurate with the risks.

Based on the risk assessment, the focus of supervision will be directed to the supervision of risk management methods and in particular to the assessment of ML/TF risks and the monitoring of customers and transactions by the firms.

Further information

Ulla-Maija Kaivola, Risk Specialist, telephone +358 9 183 5565 or ulla-maija.kaivola(at)fiva.fi

Appendix

Summary of risk assessment of money laundering and terrorist financing for capital market participants 2023 (pdf)