Norway

ANTI-MONEY LAUNDERING

FATF Status

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

 

Compliance with FATF Recommendations

The latest follow-up to the Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Norway was undertaken in 2019. According to that Evaluation, Norway was deemed Compliant for 19 and Largely Compliant for 16 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 5 of the Effectiveness  & Technical Compliance ratings.

 

 

US Department of State Money Laundering assessment (INCSR)

Norway 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: -

Although it is a high income country, Norway is not considered a regional financial center. Norway’s significance in terms of money laundering is low. There are illicit proceeds related to narcotics sales and production, prostitution, robberies, smuggling, and white collar crimes, such as embezzlement, tax evasion, and fraud. Criminal proceeds laundered in the jurisdiction derive primarily from domestic criminal activity, often by foreign criminal gangs or guest workers who in turn remit the proceeds home. The main money laundering techniques used in Norway are cash deposits and withdrawals, the use of professional facilitators such as lawyers and accountants, the buying and selling of high-value assets, and the use of cash couriers and money or value transfer services to move funds out of the country. Money and value transfer services pose risks in Norway due to the nature of the activity, combined with limited supervision of the sector.

SANCTIONS

There are no international sanctions currently in force against this country.

BRIBERY & CORRUPTION

 

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           84

World Governance Indicator – Control of Corruption            100

Norway ranks among the least corrupt countries in the world, and business is conducted with a high level of transparency. Corruption does not represent a constraint to trade or investment, and administrative corruption and petty bribery are almost non-existent. The Norwegian Penal Code criminalises active and passive bribery, trading in influence, fraud, extortion, breach of trust and money laundering. It applies to anyone who is registered in Norway and carries a penalty of up to 10 years' imprisonment, even if the act is committed abroad. A company can be held criminally liable for corruption offences committed by individuals acting on its behalf.Facilitation paymentsare prohibited, and gifts and hospitality can be considered illegal depending on their value, the intent and benefit obtained. These practices, however, very rarely occur. Law enforcement activities and the legal framework for combating corruption are very strong, and anti-corruption laws are enforced. There are no reports of official impunity. Norway’s economic crime-fighting unit, Økokrim, has proven itself effective in investigating and prosecuting corruption in Norway and, to some extent, abroad.  For further information - GAN Integrity Business Anti-Corruption Portalbusiness anti corruption

ECONOMY

Norway's has a stable economy with a vibrant private sector, a large state sector, and an extensive social safety net. Norway opted out of the EU during a referendum in November 1994; nonetheless, as a member of the European Economic Area, it contributes sizably to the EU budget.

 

The country is richly endowed with natural resources in addition to oil and gas, including hydropower, fish, forests, and minerals. The government manages the country’s petroleum resources through extensive regulation. The petroleum sector provides about 9% of jobs, 15% of GDP, and 39% of exports, according to official national estimates. Norway is one of the world's leading petroleum exporters, though oil production in 2015 was close to 50% below its peak in 2000; annual gas production, conversely, more than doubled over the same time period.

 

In anticipation of eventual declines in oil and gas production, Norway saves state revenue from petroleum sector activities in the world's largest sovereign wealth fund, valued at over $800 billion as of early 2016. The government allows itself to use up to 4% of the fund’s value, its annual expected real rate of return, to help balance the federal budget each year. After solid GDP growth in 2004-07, the economy slowed in 2008, and contracted in 2009, before returning to modest, positive growth from 2010 to 2015. Lower oil prices in 2015 caused growth to slow, increased unemployment, and weakened the Norwegian krone. The latter trend has mitigated the negative impact of lower oil and gas prices by making Norwegian exports cheaper for foreign buyers. The government has expressed willingness to increase public spending from the sovereign wealth fund to help prevent a recession.

 

Agriculture - products:

barley, wheat, potatoes; pork, beef, veal, milk; fish

 

Industries:

petroleum and gas, shipping, fishing, aquaculture, food processing, shipbuilding, pulp and paper products, metals, chemicals, timber, mining, textiles

 

Exports - commodities:

petroleum and petroleum products, machinery and equipment, metals, chemicals, ships, fish

 

Exports - partners:

UK 22.2%, Germany 17.9%, Netherlands 10.2%, France 6.6%, Sweden 6.1%, Belgium 5%, US 4.5% (2015)

 

Imports - commodities:

machinery and equipment, chemicals, metals, foodstuffs

 

Imports - partners:

Sweden 12%, Germany 11.8%, China 10.9%, UK 6.7%, US 6.6%, Denmark 6% (2015)

 

Investment Climate  -  US State Department

Norway is a modern, highly developed country with a small but very strong economy. Per capita GDP is among the highest in the world boosted by success in the oil and gas sector and other top-class industries like shipping, shipbuilding and aquaculture. The major industries are supported by a strong and growing professional services industry (finance, ICT, legal), and there are emerging opportunities in cleantech, medtech and biotechnology. Strong collaboration between industry and research institutions attracts international R&D activity and funding. The decline in oil prices since the summer of 2014 has led to a slowdown of the offshore and related industries, leading unemployment to rise from under 4 to 4.8% (March 2016). The depreciation of the Norwegian Krone (NOK) against most major foreign currencies has led to record high exports for other industries.

 

Norway is a safe and easy place to do business, ranked 9 out of 189 countries in the World Bank’s Doing Business Report, and 5 out of 175 on Transparency International’s Corruption Perceptions Index. Norway is politically stable, with strong property rights protection and an effective legal system. Productivity is significantly higher than the EU average.

 

Norway welcomes foreign investment as a matter of policy and generally grants national treatment to foreign investors. Some restrictions exist on foreign ownership and use of natural resources and infrastructure. The government remains a major owner in the Norwegian economy and retains monopolies on a few activities, such as the production and retail sale of alcohol.

As an EEA signatory, Norway continues to liberalize its foreign investment legislation to conform more closely to European Union (EU) standards and has cut red tape over the last decade to make investment easier. Foreign direct investment in Norway stood at USD 183 billion at the end of 2015 and has more than doubled over the last decade. In 2013, the Government established “Invest in Norway,” Norway’s official investment promotion agency, to help attract and assist foreign investors. There are about 5,500 foreign-owned companies in Norway, and over 300 U.S. companies have a presence.

 

 

 

Country Links

Financial Intelligence Unit Norway (EFE)
Financial Supervisory Authority of Norway
Central Bank of Norway (Norges Bank)
Other Useful Links
FATF
US State Department
Transparency International
World Bank
CIA World Factbook

Sanctions

No

FATF AML Deficient List

No

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