Estonia has made notable progress in reinforcing its anti-money laundering and counter-terrorist financing framework, according to a recent review by MONEYVAL, the Council of Europe’s monitoring body for financial crime standards. The assessment reflects the country’s continued efforts to tighten oversight, close regulatory gaps, and reduce exposure to illicit financial activity.
The evaluation highlights that Estonian authorities have strengthened several core pillars of their AML/CFT regime, particularly in the implementation of targeted financial sanctions linked to terrorism and terrorist financing. Financial institutions and other obliged entities are now subject to clearer obligations, improved guidance, and stronger supervisory expectations, helping ensure that sanctions are applied more effectively and without delay.
MONEYVAL also acknowledged improvements in Estonia’s legal and institutional framework, including enhanced coordination among supervisory and law-enforcement authorities. Risk-based supervision has been refined, allowing regulators to focus more closely on higher-risk sectors and activities. This approach aims to improve the detection of suspicious transactions and enhance the overall effectiveness of preventive measures.
Despite these advancements, the report notes that Estonia is still under enhanced follow-up, as full compliance with all Financial Action Task Force recommendations has not yet been achieved. Some areas remain partially compliant, indicating the need for further legislative refinement, stronger enforcement outcomes, and continued investment in supervisory capacity. Authorities are expected to demonstrate tangible progress in these areas through regular reporting.
The findings come at a time when Estonia, like many European jurisdictions, is facing increased scrutiny over financial crime risks associated with digital services, cross-border transactions, and emerging technologies. The country’s renewed focus on strengthening its AML framework signals an intention to align more closely with international standards while safeguarding the integrity of its financial system.
Overall, MONEYVAL’s assessment paints a picture of a jurisdiction moving in the right direction. While challenges remain, Estonia’s ongoing reforms and regulatory commitment underline a clear determination to combat money laundering and terrorist financing more effectively and to meet evolving global expectations in financial crime prevention.
