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.

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           84

World Governance Indicator – Control of Corruption             98

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

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 decades of success in the oil and gas sector and other world-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 fintech, cleantech, medtech, and biotechnology. Strong collaboration between industry and research institutions attracts international R&D activity and funding. Norway is a safe and straightforward country in which to do business, ranked 9 out of 190 countries in the World Bank’s 2020 Doing Business Report, and fourth out of 180 on Transparency International’s 2022 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.

In Norway, there is a clear division of roles in economic policy. The government is responsible for setting fiscal policy, while Norway’s Central Bank sets monetary policy with the primary goal of maintaining economic stability. While the coronavirus pandemic dampened economic activity in early 2022, government fiscal support and the phasing-out of pandemic restrictions led to an economic recovery. However, high consumer price inflation primarily driven by electricity price increases, and global supply bottlenecks in computer chips, lumber, and shipping, have added pressures to inflation. To tackle it, the Central Bank has gradually increased the reference interest rate since 2022 and the Parliament approved in December 2022 a contractionary budget for the 2023 fiscal year.

Norwegian lawmakers and businesses welcome foreign investment as a matter of policy and the government 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 retail sale of alcohol.

Norway, while not a member of the European Union (EU), is part of the European Economic Area (EEA). The EEA agreement extends the “four freedoms” to Norway, ensuring free flow of capital, personnel, services and goods between Norway and the rest of the EU. The Norwegian government continues to liberalize its foreign investment legislation with the aim of conforming more closely to EU standards and has cut bureaucratic regulations over the last decade to make investment easier. Foreign direct investment in Norway stood at $140 billion at the end of 2022 and has more than doubled over the last decade. There are approximately 8,363 foreign-owned companies in Norway, and an estimated 659 U.S. companies have a presence in the country, employing more than 50,000 people.

Country Links

Financial Intelligence Unit Norway (EFE)

Financial Supervisory Authority of Norway

Central Bank of Norway (Norges Bank)