Customer-oriented Due Diligence in the financial sector in Finland

Abstract

The research aims to focus on the role of compliance in bank customer relationships in Finland. The compliance measures adopted by the government and the central bank against the financial crimes and the security measures indirectly affect the Finnish banking customers. The study highlights the responsibilities of the banking sectors in decreasing the rate of compliance measures. The compliance risk and its management are discussed to compare and critically analyze the significance of performing risk management and due diligence in the financial sector in Finland. The research objectives focus on how the regulation and financial laws challenge the customer services in Finland. The issue of money laundering and opening of accounts is discussed from the perspective of Finnish authorities. The study projects the idea of “Know your customer” (KYC) and measure the challenges that had impacted the relationship of the banking customer relationship. It discusses customer satisfaction and possible challenges that the financial sector could experience due to the strict policies.