Crowdfunding platforms and anti-money laundering activities (AML)

Participating in combating money laundering and terrorist financing plays an important role in ensuring the reliability of the financial system and business environment in general. As we are operating in different European countries and entering into new markets, EstateGuru  considers contributing to the fight against money laundering as one of the priority business tasks. Application of AML measures is an unavoidable part of being a sustainable crowdfunding platform, for creating trust and serving clients from different parts of the world.

AML legislation in different countries diverges concerning the definition of obligated persons who have to fulfil AML compliance requirements. For example in Estonia, EstateGuru does not fall into the scope of an obliged person as defined in the Estonian Money Laundering and Terrorist Financing Prevention Act. However, to be certain of its pan-European compliance with the AML requirements, EstateGuru does apply customer due diligence on the appropriate level based on its risk assessment, risk appetite and the local legislation.

For investors, application of AML rules means that they need to fill out the relevant questionnaire on the platform website. This allows EstateGuru to know its customers and their business, as well as decide whether a business relationship can be started. Our compliance, in turn, provides our community of investors assurance about the reliability and security of the loan mediation environment. EstateGuru also screens its loan applicants based on the same principles. As a first step, we conduct the necessary background check, including a physical meeting, followed by a request for additional data or information, if necessary.

As described above, compliance with anti money laundering and terrorist financing rules in our operations is of utmost importance for EstateGuru. It is vital that we all understand the global weight and aims of these activities, do our best to avoid money laundering and terrorist financing and, through this, make a positive impact in the creation of an honest and transparent financial environment. If we wish to become a leading European crowdfunding platform, contributing to the fight against money laundering is inevitable. It benefits the platform, our clients, as well as the financial sector in general.

Mirjam Metsik

Lawyer

Member of the Estonian National Money Laundering and Terrorist Financing Risk Assessment Working Group

Useful articles:

https://medium.com/rangimaja/how-on-earth-does-estonia-rank-lowest-for-risk-of-money-laundering-f6c89384acf2

https://www.acfcs.org/estonia-at-epicenter-of-eu-money-laundering-scandals-ranked-country-least-likely-to-launder-money-aml-index/

First seen on EstateGuru