AML regulations (Anti-Money Laundering) impact Coinmotion just as they do other financial service providers, and this is reflected throughout the customer relationship.
In accordance with the requirements, Coinmotion Oy must collect the necessary customer information and identify the origin of the customer's funds. Compliance with AML regulations creates a safer and more reliable business environment for all parties involved.
What is AML?
AML stands for Anti-Money Laundering. It encompasses laws, regulations, and procedures designed to prevent the integration of illegal earnings into the legitimate financial system. In Finland, this activity is guided by the Finnish Anti-Money Laundering Act, or more precisely, the Act on Preventing Money Laundering and Terrorist Financing.
The Anti-Money Laundering Act requires entrepreneurs in certain sectors to prepare a risk assessment related to misuse risks in their operations and to identify and know their customers. This obligation applies to, for example, banks, insurance companies, financial and investment services, as well as legal services. The law also applies to providers of virtual currency services.
Entities subject to this regulation must, through their actions and practices, strive to prevent money laundering and terrorist financing. These entities are also obligated to report suspicious transactions to the authorities. In Finland, compliance with the law is monitored by the Financial Supervisory Authority (Finanssivalvonta). If any entity neglects its AML obligations as stipulated by law, the Financial Supervisory Authority can prohibit the entity's operations and impose a conditional fine.
You can examine the Finnish Anti-Money Laundering Act in more detail on the Finlex website. The website is owned by the Ministry of Justice for the publication of legal materials:
Finlex - Act on Preventing Money Laundering and Terrorist Financing
KYC (Know Your Customer), or knowing your customer, is a significant factor in combating financial crimes and money laundering. Coinmotion Oy is legally obligated to know its customers. Customer identification information and other personal data can be used to prevent, detect, and investigate money laundering and terrorist financing. This information can also be used for investigating the money laundering offense or the crime through which the property or criminal benefit subject to money laundering or terrorist financing was obtained. Customer identification information or other personal data acquired solely for preventing and detecting money laundering or terrorist financing cannot and must not be used for other purposes.
The customer goes through the KYC process at the beginning of the customer relationship, and the situation is assessed annually using the KYC form. You can further acquaint yourself with the subject in our article: What is the KYC form?
The purpose of AML regulation
- Crime prevention: Preventing criminals from laundering their illegal proceeds. Fight the financing of terrorism.
- Protecting the financial system: Ensuring the integrity and reliability of financial institutions and the economic system. AML measures help maintain trust and stability in financial markets.
- Statutory obligations: Complying with international and national regulations concerning the prevention of money laundering. Adhering to these laws is a duty, and failure to comply with AML can result in significant legal consequences for both companies and individuals.
- Company reputation and reliability: Enhancing the reputation of businesses and creating a compliant and secure service environment for customers.
AML reporting obligation
The AML reporting obligation means that regulated entities have a statutory duty to know their customers and report suspicious transactions or currency transfers to the authorities.
In Finland, this activity is directed by the Finnish Anti-Money Laundering Act. Supervision related to customer identification (KYC) and the Anti-Money Laundering Act (AML) is strictly regulated in Finland, and Coinmotion works closely with the authorities.