Probably yes
Imagine a real estate agent helping a client buy an apartment. Or a shop where a customer wants to pay a large sum in cash. Or an accountant preparing an annual report for a company. All of them have something in common: they belong to the circle of obliged entities, most of whom are probably unaware of it: the law sees them as potential money laundering gatekeepers. When we hear the words “anti-money laundering,” we usually think of banks. Justifiably so, as the biggest money laundering scandals have generated discussion from there. However, the Estonian law, the Law on the Prevention of Money Laundering and Terrorist Financing, or AML/CFT Act, also imposes similar obligations on many entrepreneurs who have no dealings with banking.## Why these specific sectors?The logic is simple: money launderers do not launder dirty money in banks because supervision there is strict. Instead, they buy real estate, trade in precious metals, use cash, or create complex corporate structures. Behind each such transaction stands a person, and it is precisely this person whom the law obliges to be vigilant if something appears suspicious.## Who does it concern?Real estate agents are one of the clearest examples. If an agent helps to sell or buy real estate, they automatically belong to those who must check the client's background. The same applies to larger rental transactions if the monthly rent exceeds EUR 10,000.Traders also remain in the game if a client wishes to pay a large sum in cash. The threshold is also EUR 10,000, whether it is one large purchase or several smaller purchases that collectively exceed this threshold. This means that even a small shop can one day become an obliged entity in the eyes of the law if a customer wants to pay in cash.Traders in precious metals and gemstones also fall into this category. Gold chains, watches, gemstone jewellery, and antiques are attractive to money launderers precisely because their value is easy to conceal and they are easily transportable.Accountants and auditors, who see companies' cash flows more closely than anyone else, are also obliged entities under the AML/CFT Act. It is precisely in this sector that there are probably the most entrepreneurs who are unaware of their obligations.Gambling organisers are also a well-known issue, as gambling is a classic money laundering channel worldwide.A less known, but equally important group are those who provide company formation or management services: they help establish companies, act as a board member, or provide a business address for a company. This sector, in particular, has been repeatedly highlighted in international studies as high-risk because it allows for the concealment of who actually stands behind the company.And, of course, companies dealing with virtual currencies, which must also be vigilant when offering cryptocurrency exchange or custody services.
What does this actually mean?
The status of a obliged entity does not mean that every client is a suspect. It means that the entrepreneur must know who they are doing business with, assess whether there is anything unusual about the transaction, and, if necessary, report it to the Financial Intelligence Unit. Most transactions go through this process completely unnoticed, but the system must be in place before something goes wrong. The problem arises when the entrepreneur does not even know that their field of activity falls under this list. In this case, it is not malicious intent, but simply ignorance, which, however, does not absolve responsibility in the eyes of the law. If you are in doubt as to whether your company falls under these obligations, it is worth checking before, not after, receiving a letter from the supervisory authority in your mailbox.
If you are in doubt as to whether your company falls under these obligations, join the Epli AML Club to stay up to date with all changes.