Estonia

New Documents

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

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.

News

Enforcement Actions

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.


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