Norway – Know Your Customer (KYC) Rules

 

 

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 like 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.

KNOW-YOUR-CUSTOMER (KYC) RULES:

 

Enhanced due diligence procedures for PEPs:

 

PEP is an abbreviation for Politically Exposed Person, a term that describes a person who has been entrusted with a prominent public function, or an individual who is closely related to such a person. The terms PEP, Politically Exposed Person and Senior Foreign Political Figure are often used interchangeably

    • Foreign PEP: YES
    • Domestic PEP: YES

Norway – KYC covered entities

 

The following is a list of Know Your Customer entities covered by Norwegian Law:

    • Banks
    • The Central Bank
    • Finance companies
    • e-money institutions
    • Pension funds
    • Postal operators
    • Auditors
    • Asset managers
    • Securities dealers
    • Credit agents
    • Money exchangers
    • Insurance companies
    • Accountants
    • Lawyers
    • Notaries
    • Auction houses
    • Realtors
    • Money transporters
    • Holding houses
    • Dealers in autos and high value goods

Norway – Suspicious Transaction Reporting (STR) Requirements:

 

Number of STRs received and time frame: 6,660 in 2010

Number of CTRs received and time frame: 3,734 in 2010

The following is a list of STR covered entities covered by Norwegian Law:

    • Banks
    • The Central Bank
    • Finance companies
    • e-money institutions
    • Pension funds
    • Postal operators
    • Auditors
    • Asset managers
    • Securities dealers
    • Credit agents
    • Money exchangers
    • Insurance companies
    • Accountants
    • Lawyers
    • Notaries
    • Auction houses
    • Realtors
    • Money transporters
    • Holding houses
    • Dealers in autos and high value goods

MONEY LAUNDERING CRIMINAL PROSECUTIONS/CONVICTIONS:

 

Prosecutions: Not available
Convictions: Not available

ENFORCEMENT AND IMPLEMENTATION ISSUES AND COMMENTS:

The Norwegian financial intelligence unit (FIU) voices some concern over the low number and poor quality of reports from certain entities covered by the reporting obligation. Banks, auditors, insurance companies and payment transfer entities maintain high levels of reporting, while reports from other industries, such as dealers in cars and other expensive items, are few and decreasing. Reporting from attorneys is up, but is low compared to the high number of transactions conducted by this sector. Given the overall transaction volume, the FIU suspects considerable underreporting in these sectors. The FIU is attempting to improve the quality of STR reporting by providing specific guidance and follow up to obligated entities. In 2010, the FIU reported 122 incidents to the National Police Intelligence System and submitted 23 formal complaints and reports to be used in criminal cases. Although aggregate data is not available, the number of money laundering prosecutions and convictions is believed to be low given the size of the Norwegian economy.

In addition to Norway‘s large currency transaction reporting requirement a purpose declaration is required for currency transactions over NOK 100,000 (approximately $17,900).

Norwegian police agencies share responsibility for identifying, tracing, freezing, seizing, and forfeiting narcotics and terrorist financing related assets. As a general rule, the police may seize direct proceeds from criminal acts. Norwegian law also allows for seizing instruments of crime, but a relationship to the crime must be proven. Norwegian law allows both criminal and civil forfeiture.