FINANCIAL MONITORING IN ESTONIA
As a European country, Estonia has adopted a number of Directives and its annexes on the fight against money laundering, as well as the law on the prevention of money laundering and terrorist financing, which was adopted in 2017.
In 2020, amendments were made regarding the virtual market of services. In general, companies must comply with the following requirements: they are familiar with and study the legal framework of Estonia for the prevention of money laundering and terrorist financing. Companies should independently monitor the potential impact of recent changes on the financial sector. Also, companies should try to find a balance between e-residency and threats. In order to comply with the rules of financial monitoring, there is a clear system of bodies involved in supervising its compliance:
- Financial intelligence units
- Investigative bodies
- Financial inspection, Notary Chamber
- Credit and financial structures
The Financial Intelligence Unit is primarily responsible for tracking money laundering, gathering information, and tracking the proceeds of crime. The unit has the right to receive from the Financial Inspectorate and other state and municipal institutions, as well as at the behest of individuals, information on activities, deals, and persons suspected of involvement in money laundering or terrorist financing.
Overall responsibility for the legislative framework and coordination of the prevention of money laundering and terrorist financing rests with the Ministry of Finance.
As a financial supervisory body, the Financial Inspectorate is involved in the prevention of money laundering, mainly through the monitoring of financial intermediaries as part of its supervisory activities. He is responsible for ensuring that the organization and risk management of banks and other financial intermediaries use processes and systems that are appropriate to business strategy and risks, and that these systems are adequately staffed. This covers the granting of loans, the provision of payment services and investment services, risk insurance, and the organization of financial intermediaries in a broader sense. Knowing your customer is part of risk management, and following this principle is itself a way to combat money laundering.
The role of financial supervision is to observe the processes and systems of persons under supervision, not to determine whether money laundering has occurred in specific cases. If during surveillance, the Financial Inspectorate discovers evidence of money laundering or terrorist financing, it is transferred to the Financial Intelligence Service in accordance with the requirements of the law.
Also, in accordance with the latest changes, the owners of legal entities must disclose their data if they are the final beneficiaries, that is, they have a decisive direct or indirect influence on the company.
Therefore, in Estonia, as in all European cranes, the requirements for financial monitoring are quite strict.
And that’s why you definitely need a financial monitoring lawyer.
Financial monitoring lawyer in Estonia is one of our main job profiles. Our bank lawyer will advise you on the following issues
- How much money can be deposited in a bank in Estonia?
- What to do when the bank requested documents on the origin of funds?
- What documents confirm the origin of funds?
- Where to get documents confirming the origin of funds?
- What to do if there are not enough documents about the origin of the funds?
- How to withdraw (return) blocked funds in an Estonian bank?
- How to close a bank account?
- How to legally bypass financial monitoring in Estonia?
- What to do if there is no source of funds?
- How to pass finmon in an Estonian bank?