FATF Status

Finland is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations​

The last Follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Finland was undertaken in 2023. According to that Evaluation, Finland was deemed Compliant for 9 and Largely Compliant for 28 of the FATF 40 Recommendations. It remains Highly Effective for 1 and Substantially Effective for 3 of the Effectiveness & Technical Compliance ratings.

US Department of State Money Laundering assessment (INCSR)

Finland was deemed a ‘Monitored’ Jurisdiction by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR). Key Findings from the report are as follows: -

Finland is not a regional center for money laundering, financial crime, or illegal commerce. The major sources of illegal proceeds in Finland relate to financial crimes, and the majority of investigated suspicious financial activities have an international dimension. The number of organized criminal groups has grown slightly in the past few years, as has the number of their members (totaling approximately 1,000).  Illicit funds are normally laundered through currency exchanges and gaming establishments. According to the National Bureau of Investigation, the use of virtual currency, such as bitcoin, as well as phone transactions have become more common in money laundering cases. In November 2015, the Finnish Security Intelligence Service (SUPO) reported that the risk of terrorism in Finland had increased from “very low” to “low” since June 2014, when the last assessment was published. Finnish authorities vigorously investigate terrorism-related fundraising.

In September 2015, the Police University College published Finland’s first national risk assessment of money laundering and terrorist financing. The report found that the key risk items of money laundering and terrorist financing in Finland are associated with real estate investments, transport of cash, front companies, online services, online shadow financing markets, and customer fund accounts.

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           87

World Governance Indicator – Control of Corruption            100

Corruption does not impact businesses operating in Finland. The Finnish regulatory system is transparent, and administrative corruption is almost non-existent. The Criminal Code contains provisions against active and passive bribery, embezzlement, fraud and abuse of office, and persons and companies can be held liable for offences. Facilitation payments are prohibited, while the propriety of gifts and hospitality depends on their value, the intent and the potential benefit obtained. Corruption is limited due to an administrative culture of transparency and openness, a strong system of internal and external controls, and the involvement of civil society in the management of public affairs. Isolated incidents of corruption and favouritism do occur, primarily at the local level, where the interests of businesses and local politicians are sometimes improperly linked in so-called ‘old-boys networks’. For further information - GAN Integrity Business Anti-Corruption Portal

Finland is a Nordic country situated north of the Baltic States, bordering Russia, Sweden, and Norway, with excellent transportation links to the Nordic-Baltic region. Finland is a member of the European Union and part of the Euro area. As a modern, stable economy, it offers a world-class investment climate and well-developed digital infrastructure with stability, functionality, and a high standard of living.

Finland joined NATO in April 2023. The alliance membership should bring economic benefits to Finland by increasing regional security and stability. Investments in the defense industry will create jobs and stimulate economic growth. The United States has become Finland’s largest trading partner, outpacing Sweden as the traditional number one.

Finland was ranked 8th in the IMD World Competitiveness Ranking in 2022. The country has a highly skilled, educated, and multilingual labor force with solid expertise in Information Communications Technology (ICT) and emerging technologies, including microelectronics, quantum and supercomputing, shipbuilding, forestry, and renewable energy.

Major challenges for foreign investors include high tax rates, a rigid labor market, cumbersome bureaucracy, and the lengthy and unwieldy process of opening bank accounts. An aging population and a shrinking workforce are the most pressing demographic concerns for economic growth. According to Foreign Direct Investment (FDI) Barometer 2023, over three-quarters of businesses report experiencing a talent shortage while large foreign-owned companies are affected. U.S. companies currently employ 21,412 people in Finland, an increase of around 3% over last year.

To attract investment, the Government of Finland (GOF) cut the corporate tax rate in 2014 to 20 percent (the lowest rate in the Nordics) and simplified its residency permit procedures. Inward FDI to Finland grew by €2.5 billion during 2021 and was €76.2 billion at the end of the year. The United States is the second-largest foreign direct investment (FDI) source in Finland, after Sweden.

Finland was ranked first in the UN’s Sustainable Development Report, which compares 193 UN member states based on 17 sustainability goals. The country has set ambitious goals to reach carbon neutrality by 2035, increasing the interest of companies with equally high sustainability goals looking for opportunities to invest.

Olkiluoto 3 (OL3) nuclear reactor began regular electricity output in April 2023, accelerating the move towards a carbon-neutral society. Production has reduced electricity imports by about 60 %. A new liquefied natural gas (LNG) terminal was established in Finland, allowing future imports of non-Russia sourced natural gas.

Gross domestic product (GDP) is expected to contract by 0.2 percent, but the economy will return to growth at the end of 2023. Energy consumer prices started to rise in the aftermath of the covid-19 pandemic and continued during 2022 due to the energy crisis prompted by the Russian invasion of Ukraine.

The Foreign Commercial Service and Political/Economic Section at the U.S. Embassy in Finland are valuable resources for American businesses wishing to engage the Finnish market. Business Finland is the government organization operating as a one-stop-shop for foreign investors and facilitating innovation funding, foreign direct investment, and trade promotion.

Country Links

Financial Intelligence Unit (RAP)

Financial Supervisory Authority, (FIN-FSA Finanssivalvonta in Finnish)

Bank of Finland