The European Commission says that Estonia has not fully implemented the European Union Fourth Anti-Money Laundering Directive (4MLD).
The commissions sent a letter of formal notice to Estonia Thursday, stating that Estonia, in the commission's opinion, has not correctly transposed the 4MLD, which concerns the misuse of a member state's financial system for money laundering or terrorism-financing purposes, into domestic law.
However, the commission's says its findings do not demonstrate this. Important points concerning politically exposed persons (PEP), beneficial owners, risk assessments and access to information by the FIU have been incorrectly transposed, the commission says.
The letter represents the first time the commission has directly approached a member state on implementing this directive, and follows in-depth analysis.
If Estonia does not provide sufficient explanations to the commission, it may issue a formal precept to Estonia to comply with EU legislation of the European Union.
Estonia has two months to respond to the formal notice.
On May 7, the European Commission presented a six-point action plan to strengthen the fight against money laundering and terrorist financing.
Editor: Andrew Whyte