WHAT ARE THE
Money laundering and terrorism financing laws in Norway?
In Norway, money laundering and terrorism financing are heavily regulated under the Anti-Money Laundering Act (2018). This Act came into effect to tighten regulations and increase transparency in sectors susceptible to money laundering and terrorism financing. These sectors include banks, mortgage companies, insurance firms, audit and accounting firms, estate agents, and legal firms.
The Anti-Money Laundering Act (2018) aligns Norway's anti-money laundering (AML) and counter-terrorism financing (CTF) regulations with the standards of the European Union's Fourth and Fifth Anti-Money Laundering Directives (AMLD4 and AMLD5). It also adheres to the guidelines set out by the Financial Action Task Force (FATF), an international body that sets AML standards.
WHAT ARE THE
Key obligations reporting entities have under Norwegian laws?
Under Norway's Anti-Money Laundering Act (2018), reporting entities such as banks, mortgage companies, insurance firms, audit and accounting firms, estate agents, and legal firms have several key obligations:
- Customer Due Diligence (CDD): Entities are required to identify and verify the identity of their customers as well as understand the nature and purpose of the business relationship.
- Ongoing Monitoring: Entities must conduct ongoing monitoring of business relationships to ensure transactions are consistent with the entity's knowledge of the customer and their risk profile.
- Suspicious Transaction Reporting: Entities are obliged to report any suspicious transactions or activities to the Financial Intelligence Unit (FIU) of Norway.
- Record Keeping: Entities must maintain records of all customer and transaction data for a minimum period, typically five years.
- Risk Assessment: Entities are required to perform a risk assessment of their customers to determine their risk level for money laundering and terrorism financing.
- Internal Policies, Procedures, and Controls: Entities must establish and implement internal policies, procedures, and controls to prevent and detect money laundering and terrorism financing activities.
- Training: Entities must provide regular training to their employees on AML and CTF laws and procedures.
WHO ARE THE
ML/TF regulators in Norway and what functions do they perform?
In Norway, the regulatory oversight for anti-money laundering (AML) and counter-terrorism financing (CTF) is provided by the following bodies:
- The Financial Supervisory Authority of Norway (Finanstilsynet): This is the primary regulatory body that oversees financial institutions and enforces compliance with the Anti-Money Laundering Act.
- The National Authority for Investigation and Prosecution of Economic and Environmental Crime in Norway (Økokrim): This body investigates and prosecutes cases related to money laundering and terrorism financing.
- The Financial Intelligence Unit (FIU) of Norway: This unit is responsible for receiving and analyzing suspicious transaction reports from obligated entities.
WHAT ARE THE
Industry sectors subject to ML/TF regulations?
In Norway, the Anti-Money Laundering Act (2018) applies to a wide range of industry sectors. These include, but are not limited to:
WHAT ARE THE
Penalties for non-compliance with AML/CTF laws?
In Norway, failure to comply with the Anti-Money Laundering Act (2018) can result in serious penalties. The specific penalties depend on the nature and severity of the violation, but they can include:
- Fines: Both individuals and businesses can be subject to substantial fines for non-compliance.
- Imprisonment: In serious cases, individuals responsible for non-compliance can face imprisonment.
- Business Restrictions: Non-compliant businesses may face restrictions on their operations, which could include the suspension or revocation of their license to operate.
It is worth noting that the exact penalties are determined on a case-by-case basis and are at the discretion of the Norwegian courts and regulatory bodies.
WHAT ARE THE
Largest fines for non-compliance with AML/CTF laws?
The largest fines for non-compliance with AML/CTF laws in Norway include:
- DNB Bank ASA: DNB Bank ASA was penalized on May 03, 2021, for violating anti-money laundering laws. The Norway Financial Supervisory Authority found that the bank failed to manage payments from an Icelandic fishing company in accordance with AML regulations. The inspection also revealed shortcomings in risk assessment, monitoring of electronic transactions, and customer due diligence measures. DNB Bank was fined NOK 400,000,000.
- Santander Consumer Bank: Santander Consumer Bank was penalized on June 28, 2019, for an electronic monitoring system failure. The bank failed to check about 1.6 million transactions involving 300,000 customers between October 30, 2014, and December 6, 2018. The Financial Supervisory Authority imposed a fine of USD 1 million on the bank.