Estonia

New Documents

Estonian Parliament Passes Amendments to Money Laundering, Terrorist Financing Law

Estonia’s Ministry of Finance, Rahandusministeerium, announced the approval of amendments to the Money Laundering and Terrorist Financing Prevention Act by the Estonian Parliament.

June 18, 2020

Estonia’s Parliament Proposes Changes to AML/CTF Laws

Estonia’s Ministry of Finance announced the approval of draft changes to the Money Laundering and Terrorist Financing Prevention Act, which would create whistleblower protections.

December 23, 2019

Estonian Regulator Ends Misdemeanor Probe of Swedbank

November 18, 2019

Estonia’s Finantsinspektsioon Opens Misdemeanor Case into Swedbank AS

November 8, 2019

IMF Highlights Progress in Strengthening Estonia’s AML/CTF Regime

November 6, 2019

News

Midweek Roundup: HSBC Rejects China’s Accusations, Beijing Urges Migration from Swift, and More

Westpac discloses 500,000 unreported transactions, Visa and Mastercard flagged indicia of fraud at Wirecard, and more, in the midweek roundup.

July 29, 2020

Midweek Roundup: EBA to Probe Lapses in Supervision of Dos Santos’ Affairs, Global Banks Review Hong Kong Clients’ Political Ties, and More

Swiss banks close accounts of Russia-led intergovernmental group, Wirecard investors to sue BaFin, EY over accounting scandal, and more, in the midweek roundup.

July 22, 2020

Midweek Roundup: New York Penalizes Deutsche Bank, FinCEN Releases COVID-19 Guidance, and More

July 8, 2020

Weekly Roundup: Goldman Sachs Negotiating 1MDB Settlement, Westpac Triggers Another Investigation, and More

June 12, 2020

Midweek Roundup: Former Coutts AML Exec in Swiss 1MDB Trial, US Companies Reducing Compliance Staff, and More

May 27, 2020

Enforcement Actions

Estonia’s FIU Withdraws GFC Good Finance Company AS License for AML/CTF Failures

The Estonian Financial Intelligence Unit, Finantsinspektsioon, withdrew the operating licence of the Tallinn, Estonia based financial institution for serious breaches of anti-money laundering and terrorist financing requirements.

May 28, 2019

Key Documents

Estonia Implements Third European Money Laundering Directive

December 19, 2007

Estonian Regulator Sets Rules for Simplified CDD

April 3, 2008

Estonian Regulator Approves AML/CTF Rules of Procedure

April 3, 2008

Estonian Regulator Approves Format of Suspicious Transactions Reports

January 23, 2008

Estonian Minister Sets Procedures for ML/TF Data Collection

January 23, 2008

Estonia Creates Legal Basis for International Sanctions Implementation

December 4, 2002

Important Facts

  • The U.S. State Department identifies Estonia as a monitored jurisdiction. Estonia has a highly developed and transparent banking sector and its rule of law is recognized as established and mature. Estonia is a transit country for narcotics and other illicit goods. Transnational and organized criminal groups are attracted to Estonia due to its location between Eastern and Western Europe. Analysis of suspicious transaction reports reveals instances where the proceeds of internet crime get transferred to Estonia. Gaming both through casinos and online is legal and well regulated. Common predicate offenses for money laundering are fraud, computer fraud and tax-related offenses.
  • KYC Covered Entities: Banks and credit institutions; lottery and gaming institutions; real estate firms and pawnbrokers; auditors, accountants, and accounting and tax advisors; service providers for trust funds and business associations; notaries, attorneys, and bailiffs; trustees in bankruptcy and legal services providers; dealers of high-value goods, precious metals, INCSR 2016 Volume II Country Database 162 precious metals articles, or precious stones; and nongovernmental organizations and foundations if they receive a cash payment exceeding established thresholds
  • STR Covered Entities:  Banks and credit institutions; lottery and gaming institutions; real estate firms and pawnbrokers; auditors, accountants, and accounting and tax advisors; service providers for trust funds and business associations; notaries, attorneys, and bailiffs; trustees in bankruptcy and legal services providers; and dealers of high-value goods, precious metals, precious metals articles, or precious stones
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 32 (January – September 2015); Convictions: 30 (January – September 2015)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 8 High :
Largely Compliant : 27 Substantial :
Partially Compliant : 12 Moderate :
Non-Compliant : 1 Low :
Not-Applicable : 1

BASEL i

Rank : 141/141
Score : 2.36/10

TRANSPARENCY INTERNATIONAL i

Rank : 18/180
Score : 74/100

Tax Justice Network i

Rank : 121/133
Score : 43/100