Anti-money laundering: Estonia rejects plans for ‘unexplained wealth orders’
18 Jan 2019

Estonia has dropped plans for a rule that would demand people suspected of benefiting from suspected criminal cash prove the source of their wealth is legitimate.

Estonia has been thrust into the limelight in recent months following a €200 billion money laundering scandal stemming from the Estonian branch of Danske Bank.

The country is looking to reform its financial crime regime.

On Thursday, however, a parliamentary committee is understood to have rejected the proposal for the suspicious wealth rule, saying it was ‘not specific enough.’

“The current wording is not specific enough and of course, we do not want to create anxiety for honest people,” said Jaanus Karilaid, the head of parliament’s Legal Affairs Committee, quoted in Reuters.

The rejected Estonian draft law is similar to Britain’s unexplained wealth orders (UWO), which force individuals to explain the source of their assets that are suspected to be linked to criminal cash.

An Estonian-based source told KYC360 that the proposal will be likely raised again at later stages of the bill.

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