a natural person's identity is normally verified by producing a document issued by a public authority, which normally contains
full name, signature, photograph and personal identity number or D-number (non-residents liable to pay tax are registered with a unique Dnumber).
Examples of suitable documents include a passport, bank card and driving licence.
a legal person's identity is verified by Certificate of Registration/Certificate of Incorporation from the Public Register.
The Money Laundering Act (MLA) requires financial institutions to verify the identity of beneficial owners on the basis of reasonable measures. The MLA defines ‘beneficial owners’ generally as the ‘natural persons who ultimately own or control the customer and/or on whose behalf a transaction or activity is being carried out’. The definition is then further elaborated to describe five situations where a person ‘in all cases’ is to be regarded as a beneficial owner.
The MLA requires financial institutions to apply ‘other customer due diligence measures’, in addition to the basic customer due diligence measures stipulated in the MLA in the following cases: a) situations that by their nature involve a ‘high risk of transactions associated with proceeds of crime’ or certain designated offences listed in the Criminal Code (including terrorist financing and terrorism offences); b) business relationships and transactions with Politically Exposed Persons (‘PEPs’); and c) correspondent banking relationships.
Reporting entities are required to conduct ‘appropriate customer due diligence measures’ to verify whether the customers are PEPs. Such
a) obtaining approval from senior management before establishing a customer relationship;
b) taking appropriate measures to ascertain the origin of the customer’s assets and of capital involved in the customer relationship or
the transaction; and
c) carrying out enhanced ongoing monitoring of the relationship.
When establishing cross-border correspondent banking relationships with institutions outside the EEA area, institutions are required to: a) gather sufficient information concerning the correspondent institution to fully understand the nature of its activities and, on the basis of publicly available information, to determine the reputation of the institution and the quality of supervision; b) assess the institution’s control measures; c) ensure that the decision maker obtains approval from senior management before establishing a new correspondent relationship; d) document the respective responsibilities; and e) ascertain that the correspondent institution conducts ongoing monitoring of customers
The former requirement of face-to-face relationships is replaced by the implementation of risk based customer due diligence and ongoing
monitoring of customer relationships.
ØKOKRIM; The National Authority for Investigation and Prosecution of Economic and Environmental Crime in Norway
International wire transfers, foreign exchange and foreign credit and debit card transactions are reported to the: Foreign Exchange, Foreign Currency Register with the Norwegian Directorate of Customs and Excise
Yes, breaches of the Money Laundering Act can be punished with fines or imprisonment for up to 1 year when special aggravating circumstances exists.
Yes, financial institutions have an obligation according to the Money Laundering Act to use electronic suspicious transaction monitoring systems.
Yes, as the principal rule, suspicious transactions shall not be proceeded before a report is made to the FIU (ØKOKRIM). ØKOKRIM can decide that the actual transaction shall not be effected.
Not mentioned in the regulations.
The police will also issue electronic ID when the new national ID card will be issued next year.
Debt certificates, premarital agreements and a board's signing of annual accounts are examples of excluded transactions.
Section 6 recognizes electronic signatures as legal as enforceable.
Summary of Law.
Norway follows the European Union Model. It is considered a two-tier jurisdiction because it gives digital signatures the same status as handwritten signatures but also recognizes simple electronic signatures as legal and enforceable. Countries that follow this model give companies the opportunity to select different forms of signatures and customize their business processes based on the form that is most convenient and appropriate for each use case. Electronic signatures are presumed valid unless proof to the contrary is produced, but hey do not have the same status as digital (or qualified electronic) signatures.
Customer identification and verification of authentication.
Yes - risk based customer due diligence and monitoring customer relationships on an ongoing basis.
Normally, the establishment of non-face-to-face business relationships is not allowed and the customer must physically appear either at the
reporting financial institution or at an agent or outsource company, where identification and verification is performed. Copies can be certified
in exceptional circumstances and must be verified by authorised persons, including postal employees, the police and lawyers.