The Estonian Financial Supervisory Authority noted that following the enhancement of AML/CTF and KYC measures linked to professional obligations, it is unacceptable that some clients remain in the financial system.
As part of that call, the FSA instructed professionals to include more detailed and comprehensive assessments as part of their client on-boarding and ongoing due diligence processes.
To ensure that, some entities have been set under detailed monitoring.
The agency highlighted the inherited risk of serving non-residents and said that the financial system is moving towards a derisking effort by reducing activities and focussing on local markets.
“We are giving a single and consistent message to the managers of the banks that Estonia is no place for dodgy banking,” Nomm (member of the Board of the Supervisory Agency) said in a separate statement.
The aforementioned means that professionals must ensure a comprehensive client acceptance and maintenance policy and ensure rejection and termination of business not falling in the institution risk appetite, but also in the country risk tolerance.
