Regulations and guidelines 2/2023 on prevention of money laundering and terrorist financing enter into force on 26 June 2023
The Financial Supervisory Authority (FIN-FSA) has issued regulations and guidelines 2/2023 on the prevention of money laundering and terrorist financing (corresponding to the draft of regulations and guidelines 1/2022 on the prevention of money laundering and terrorist financing, which has been subject to public consultation).
The objective of the regulations and guidelines is to provide entities supervised by the FIN-FSA with interpretations and recommendations on the application of AML/CFT regulation. They seek to guide supervised entities in taking proportionate and risk-based actions against money laundering and terrorist financing in areas where legislation does not provide adequate guidance. A further intention is to harmonise and improve the effectiveness of application of regulation concerning the prevention of money laundering and terrorist financing. In addition, the objective of the regulations and guidelines is to issue binding regulations to supervised entities.
The regulations and guidelines also incorporate changes resulting from the new partial reform of the AML Act. In derogation from the draft that was subject to public consultation, the section on the processing of information concerning criminal convictions and offences has been removed from the regulations and guidelines. The reason for this is that the new section 3 a of chapter 3 on the processing of information on criminal convictions and offences presented in Government bill 236/2021 was not passed as part of the partial reform of the AML Act.
After the public consultation round, an amendment was made to section 188.8.131.52 of the regulations and guidelines concerning the designation of a person from the management. The new guidelines allow for more case-by-case discretion regarding the level of management from which the person may be designated. In addition, the FIN-FSA has introduced a new paragraph (29) to section 6.3.1 regarding the completion of verification of identity after the establishment of the customer relationship.
The regulations and guidelines repeal the following:
- FIN-FSA standard 2.4 Customer due diligence – Prevention of money laundering and terrorist financing.
- FIN-FSA regulations and guidelines 7/2021 Money laundering and terrorist financing risk factors.
- FIN-FSA statement on customer due diligence information and banks’ procedures (3/2016).
- FIN-FSA statement on simplified customer due diligence procedures for private road maintenance associations and public water area maintenance associations (27/2020).
Entry into force
The regulations and guidelines will enter into force on 26 June 2023.
For further information, please contact
Jonna Ekström, Senior Legal Advisor, telephone +358 9 183 5531 or jonna.ekstrom(at)fiva.fi