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General information about the Act on Preventing Money Laundering

The new Act on Preventing Money Laundering and Terrorist Financing (28.6.2017/444) came into force on 3 July 2017 with the implementation of the EU’s Anti-Money Laundering Directive.

Some clarifications were made to the law and its scope was extended at the start of 2019. The Act replaced the old anti-money laundering act and brought with it new requirements to insurance representatives, estate agencies, accountants and companies providing corporate consultancy and legal services, in addition to traditional financial sector operators.

Impacts of the Act on Preventing Money Laundering on companies’ operations

The obligation also applies to those selling or supplying goods to the extent that a payment is made or received in cash totalling €10,000 or more, whether the transaction is made in a single operation or in several operations which are linked. The aim of the new law is to direct the above-mentioned obliged entities to identify and assess more clearly the money laundering and terrorist financing risks related to their activities. According to the law, obliged entities must, for example, attend to customer due diligence, monitor customers’ business activities, report any suspicious transactions and ensure that the obligations of the Act on Preventing Money Laundering are recognised and complied with in the trader’s businesses.

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