Money laundering represents the legalization of funds from criminal or illegal sources through a legitimate payment system. Terrorist financing represents the funding of terrorists to carry out terrorist activities. Money laundering represents the legalization of funds from criminal or illegal sources through a legitimate payment system. Terrorist financing represents the funding of terrorists to carry out terrorist activities. Therefore, financial crimes pose significant threats to the whole world as well as to Finland.
Overview of AML in Finland
Finland has made clear in the Act on Preventing Money Laundering and Terrorist Financing that money laundering and terrorist financing is a crimes. This act states which activities will be criminalized and the penalties for money laundering activities. Finland's national AML acts and regulations are based on European Union directives and FATF recommendations. The National Bureau of Investigation (NBI) operates as the Financial Intelligence Unit in Finland. The National Bureau of Investigation is responsible for detecting and preventing financial crimes.
AML Obligations in Finland
"Know Your Customer" and "Customer Due Diligence" obligations have a large place among AML obligations in Finland. According to Know Your Customer procedures, customer information must be collected before companies start a business relationship with a customer, and the accuracy of this information must be checked. Then the company has to apply a risk assessment to the customer with CDD procedures. During the risk assessment, sanction, PEP, and adverse media screening are performed. Companies aim to detect potential risks during customer account opening with these controls.
AML Name Screening Software provides sanction, PEP, and adverse media screening services. In our AML database, there are sanction, PEP, and adverse media data of more than two hundred countries, and all this data is updated instantly. With AML Name Screening Software, companies operating in Finland can complete CDD procedures in seconds and ensure AML compliance.
Detection of Suspicious Transactions
Financial institutions must put in place an adequate control mechanism to detect suspicious transactions. Money laundering methods have changed in the past. And every year, we are faced with a new money laundering technique. Today, Transaction Monitoring Software is preferred over manual methods in order not to be vulnerable to changing money laundering techniques. With Transaction Monitoring Software, companies create risk scenarios and automatically control all customer transactions. Suspicious transactions with alerts must be reported to the financial intelligence unit.