This document is a mutual evaluation report on Norway's anti-money laundering and counter-terrorist financing system. It finds that while Norway has a substantial system, there are some moderate and partially compliant areas that need strengthening. It provides key findings on risks, policies, supervision, investigations and prosecutions. It then rates Norway's level of effectiveness and technical compliance in 11 immediate outcomes and 40 technical compliance components. It prioritizes actions for Norway to improve its national risk assessment, use of financial intelligence, targeted sanctions, preventive measures and supervision.

1. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
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Anti-money laundering and counter-
terrorist financing measures in
Norway
Fourth Round Mutual Evaluation
Key findings, ratings and priority actions
18 December 2014
www.fatf-gafi.org/topics/mutualevaluations/documents/mer-norway-2014.html

2. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
Key findings
 Information on, and analysis of money
laundering risks in Norway is incomplete.
– Norway needs to work further to identify and
understand the risks, including on predicate
offences
– Information on, and assessment of, terrorist
financing risks is much stronger
 The lack of overarching national anti-money
laundering and countering the financing of
terrorism (AML/CFT) policies, strategies, and
policy-level coordinating mechanisms, has
caused shortcomings.
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3. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
Key findings
 Use of financial intelligence differs
significantly between competent authorities.
 Investigation and prosecution of money
laundering is not a high priority, primarily
due to the focus on the predicate offence,
leading to few money laundering
prosecutions and convictions.
 Norway is taking appropriate action to
detect and disrupt terrorist financing in line
with the identified risks, but there are
weaknesses regarding targeted financial
sanctions.
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4. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
Key findings
 Norway has taken significant measures to
implement proliferation financing sanctions.
But effectiveness is undermined by delays to
transpose the designations into Norwegian
law and a lack of supervision of the sanctions
implementation by reporting entities.
 Since 2009, Norway has taken limited action
to update laws and other measures,
particularly for preventive measures, and this
is a priority for enhancing compliance and
effectiveness.
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5. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
Key findings
 The Financial Supervisory Authority conducts
limited AML/CFT supervision, mostly in the
context of prudential and business conduct
supervision.
– serious breaches of basic compliance have been
identified
– they have not sanctioned financial institutions
other than issuing written warnings
 There is an extensive and transparent system
of registers on legal ownership and control.
 Norway has taken an open and collaborative
approach to international cooperation.
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6. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
Ratings – Effectiveness (1/3)
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Immediate outcome of an effective system to combat money
laundering (ML) and terrorist financing (TF)
Extent to
which
Norway has
achieved this
objective
1. ML and TF risks are understood and, where appropriate,
actions co-ordinated domestically to combat ML and TF
Moderate
2. International co-operation delivers appropriate information,
financial intelligence, and evidence, and facilitates action
against criminals and their assets
Substantial
3. Supervisors appropriately supervise, monitor and regulate
financial institutions and designated non-financial
businesses and professions (DNFBPs) for compliance with
AML/CFT requirements commensurate with their risks.
Moderate
4. Financial institutions and DNFBPs adequately apply AML/CFT
preventive measures commensurate with their risks, and
report suspicious transactions.
Moderate

7. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
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Immediate outcome of an effective system to combat money
laundering (ML) and terrorist financing (TF)
Extent to
which
Norway has
achieved this
objective
5. Legal persons and arrangements are prevented from misuse
for money laundering or terrorist financing, and information
on their beneficial ownership is available to competent
authorities without impediments
Moderate
6. Financial intelligence and all other relevant information are
appropriately used by competent authorities for money
laundering and terrorist financing investigations.
Moderate
7. Money laundering offences and activities are investigated
and offenders are prosecuted and subject to effective,
proportionate and dissuasive sanctions
Moderate
8. Proceeds and instrumentalities of crime are confiscated. Moderate
Ratings - Effectiveness

8. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
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Immediate outcome of an effective system to combat money
laundering (ML) and terrorist financing (TF)
Extent to
which
Norway has
achieved this
objective
9. Terrorist financing offences and activities are investigated
and persons who finance terrorism are prosecuted and
subject to effective, proportionate and dissuasive sanctions.
Substantial
10. Terrorists, terrorist organisations and terrorist financiers are
prevented from raising, moving and using funds, and from
abusing the non-profit sector.
Moderate
11. Persons and entities involved in the proliferation of weapons
of mass destruction are prevented from raising, moving and
using funds, consistent with the relevant United Nations
Security Council Resolutions.
Moderate
Ratings - Effectiveness

9. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
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Ratings – Effectiveness
0
2
9
0
High
Substantial
Moderate
Low

10. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
Ratings – technical compliance
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AML/CFT POLICIES AND COORDINATION
1. Assessing risks & applying a risk-based approach Partially compliant
2. National cooperation and coordination Partially compliant
MONEY LAUNDERING AND CONFISCATION
3. Money laundering offence Compliant
4. Confiscation and provisional measures Largely compliant
TERRORIST FINANCING AND FINANCING OF PROLIFERATION
5. Terrorist financing offence Largely compliant
6. Targeted financial sanctions related to terrorism & terrorist financing Partially compliant
7. Targeted financial sanctions related to proliferation Partially compliant
8.Non-profit organisations Largely compliant

11. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
Ratings – technical compliance
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PREVENTIVE MEASURES
9. Financial institution secrecy laws Largely compliant
Customer due diligence and record keeping
10. Customer due diligence Partially compliant
11. Record keeping Largely compliant
Additional measures for specific customers and activities
12. Politically exposed persons Partially compliant
13. Correspondent banking Partially compliant
14. Money or value transfer services Largely compliant
15. New technologies Partially compliant
16. Wire transfers Partially compliant

12. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
Ratings – technical compliance
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PREVENTIVE MEASURES (continued)
Reliance, Controls and Financial Groups
17. Reliance on third parties Partially compliant
18. Internal controls and foreign branches and subsidiaries Partially compliant
19. Higher-risk countries Largely compliant
Reporting of suspicious transactions
20. Reporting of suspicious transactions Compliant
21. Tipping-off and confidentiality Largely compliant
Designated non-financial Businesses and Professions (DNFBPs)
22. DNFBPs: Customer due diligence Partially compliant
23. DNFBPs: Other measures Largely compliant

13. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
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TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL PERSONS AND ARRANGEMENTS
24. Transparency and beneficial ownership of legal persons Partially compliant
25. Transparency and beneficial ownership of legal arrangements Partially compliant
POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES AND OTHER INSTITUTIONAL
MEASURES
Regulation and Supervision
26. Regulation and supervision of financial institutions Partially compliant
27. Powers of supervisors Largely compliant
28. Regulation and supervision of DNFBPs Partially compliant
Operational and Law Enforcement
29. Financial intelligence units Largely compliant
30. Responsibilities of law enforcement and investigative authorities Compliant
31. Powers of law enforcement and investigative authorities Largely compliant
32. Cash couriers Compliant
Ratings – technical compliance

14. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
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TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL PERSONS AND ARRANGEMENTS
(continued)
General Requirements
33. Statistics Partially compliant
34. Guidance and feedback Largely compliant
Sanctions
35. Sanctions Partially compliant
INTERNATIONAL COOPERATION
36. International instruments Compliant
37. Mutual legal assistance Largely compliant
38. Mutual legal assistance: freezing and confiscation Largely compliant
39. Extradition Largely compliant
40. Other forms of international cooperation Largely compliant
Ratings – technical compliance

15. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
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Ratings – technical compliance
5
16
18
0
Compliant
Largely compliant
Partially compliant
Non-compliant

16. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
Priority Actions for Norway to
strengthen its AML/CFT System
 Assessment of risk, coordination and policy
setting
– Work as soon as possible on a more robust
National Risk Assessment.
– Develop national AML/CFT policies based on
money laundering and terrorist financing risks,
and improve coordination.
– Maintain comprehensive statistics on anti-
money laundering issues to inform the risk
assessment and support evidence-based policy
making.
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17. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
Priority Actions for Norway to
strengthen its AML/CFT System
 Money laundering and the use of financial
intelligence
– Law enforcement agencies should prioritise and
give investigative focus to further use financial
intelligence and the money laundering offence
to target organised crime, tax offences, foreign
proceeds of crime and other high threat areas.
– The police districts and KRIPOS/NAST should
enhance their use of financial intelligence.
– Norwegian police and prosecution authorities
should continue to prioritise confiscation of
proceeds of crime and examine why actions to
confiscate criminal proceeds are not effective.
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18. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
Priority Actions for Norway to
strengthen its AML/CFT System
 Terrorist financing and proliferation
financing
– Develop national policies to use targeted
financial sanctions to combat TF and PF,
including by:
• establishing a mechanism to implement all aspects
of targeted financial sanctions
• removing delays in transposition of designations for
proliferation financing sanctions into Norwegian law
• monitoring of reporting entities for compliance with
the targeted financial sanctions
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19. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
Priority Actions for Norway to
strengthen its AML/CFT System
 Preventive measures and supervision
– Update AML/CFT preventive measures of Money
Laundering Act consistent with the FATF
Recommendations
– Establish a stronger, clearer and more
comprehensive requirement for reporting entities
to assess ML/TF risk, implement preventive
measures on a risk-sensitive basis
– Enhance AML/CFT supervision and ensure future
supervision on the basis of ML/TF risk
– Supervisors should ensure that AML/CFT
deficiencies identified during examinations lead to
dissuasive, proportionate and effective supervisory
actions
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20. Anti-money laundering and counter-terrorist financing measures in Norway – Mutual Evaluation Report – December 2014
Priority Actions for Norway to
strengthen its AML/CFT System
 Transparency and beneficial ownership
– Take measures to ensure that beneficial ownership
information of Norwegian legal entities is available
when they are owned by foreign entities
– Obligations (and associated sanctions) should be
imposed on trustees of foreign trusts to disclose
their status to reporting entities
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