New money laundering law

A new law seeking to clamp down on money laundering and terrorism financing will come into force on 1 September.

This update on the old law from 2018 was adopted by Faroese MPs in March and is part of Danish national law which has been adapted to Faroese conditions.

The new law seeks to prevent money laundering, i.e. concealment of the origins of money obtained illegally by passing it through complex sequences of banking transfers or commercial transactions.

It also aims to block money transfers relating to terrorism financing.

In line with international requirements

With the upgrade, the Faroes now meet the requirements of the Financial Action Task Force (FATF), an intergovernmental organisation founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.

Its mandate was expanded in 2001 to include terrorism financing.

The Faroes are a member of the FATF as a part of the Danish commonwealth.

Translated by prosa.fo