When you create a bank account or VPS account, you are asked whether you are a politically exposed person (PEP). Sindre Finnes is considered a PEP because he is married to Erna Solberg, who has been leader of the Conservative Party since 2004 and prime minister between 2013 and 2021. If you are a PEP, the bank or financial institution must follow extra closely, primarily to detect corruption or money laundering. news has asked Finnes several questions via his lawyer about whether he has ticked the box to be a PEP. – Sindre Finnes states that he is registered as a PEP, writes lawyer Thomas Skjelbred in an email. But Finnes also mentions that he has accounts where he is not registered as a PEP. – He has two old accounts in Nordea, which were previously in Sunnmørsbanken, where he does not think he is registered as a PEP, but the accounts have not been used for many years, says Skjelbred. – How long has it been since the accounts were in use? – I don’t know anything more than that it was a number of years ago, says Skjelbred. Updated 28/09/2023 at 16:20: Following publication, Skjelbred has contacted to say that the accounts were last used before 2013, and to clarify that he is speaking on behalf of Finnes. Finnes has not answered what he used the accounts for, or whether he decided whether he was a PEP when Norwegians had to identify themselves to the banks a couple of years ago. Enhanced follow-up A PEP must have enhanced follow-up. This could mean, for example, that a PEP receives more detailed questions about what the account will be used for. The list of Sindre Finnes’ transactions shows that he has bought and sold shares 3,640 times while his wife was prime minister. The PEP rules were tightened in 2018. More than half of Finnes’ deals took place in the last two years. Solberg was the country’s most powerful. news has been in contact with several key people in the financial community, who are surprised that Finnes has not been reported to Økokrim with transactions surrounding major political decisions. Law professor Jon Petter Rui at the University of Bergen says that the financial institutions have a duty to find out whether a person is a PEP. The way they investigate it is often to ask the customers. – But what if they don’t state it, then? – Then it is not so easy for the bank to uncover. But there are some suppliers who try to keep updated lists on PEP, he replies. Law professor Jon Petter Rui says that a PEP has enhanced follow-up. Photo: Bjørn Olav Nordahl He says that the reason why PEP was introduced was corruption among politicians and civil servants. – If you see that the account is being used for something other than expected, you have a duty to investigate. If suspicion arises, the suspicion must be reported to Økokrim. If you see the annual report of Økokrim, you will see how many people they receive a year, and there are many thousands, he says. Rui further explains that if you engage in share trading and trade through a reporting entity, a PEP will have enhanced follow-up. – But they look at money and transactions, and cannot start questioning customers. If there are unnatural flows and transaction patterns, the bank can ask questions, says the law professor. Do you think the transactions do not arouse suspicion – There is not necessarily something in Sindre Finne’s behavior that would trigger a PEP suspicion? – No. The bank does not know where you bought shares. It is not clear from the transaction history, he replies. – Are the regulations too poor to catch politically exposed people who trade shares they shouldn’t? – The regulations are not bad, but the intention behind the PEP regulations is to uncover money laundering. The money laundering regulations are designed to detect money laundering, not to prevent and detect all possible crimes that may be committed, he replies. news has also spoken to the director of the retail market at BN Bank, Endre Jo Reite, about the regulations regarding PEP. – According to the list, Sindre Finnes has bought and sold shares approximately 3,640 times. Would you react to that? – It may sound like a lot, but it is also important to remember that this is over many years. If it had been the case that I had had a customer in a similar position, I probably wouldn’t have thought it was anything abnormal, he says, and continues: – It’s not necessarily things like hobby trading that raise flags. But now it is up to Økokrim to make a concrete assessment in this matter. – It is not necessarily things like hobby trading that raise flags, says director of personal markets at BN Bank, Endre Jo Reite. Photo: Morten Andersen / news Does not have PEP register Finanstilsynet does not keep a record of which persons hold roles that are considered PEP. There is also no national register or statistics on how many cases related to PEP are reported from banks or financial institutions. – When someone has been reported as a politically exposed person, what routines are there for controlling share transactions with a view to insider trading, integrity etc.? – PEP is not dealt with in the regulations for market conduct. In connection with investigations into insider trading, the Norwegian Financial Supervisory Authority does not carry out any special/extra control of PEP, supervisory adviser Jo Singstad writes in an e-mail. news has asked Finanstilsynet whether they have received reports from financial institutions that concern PEP in or around political leadership in governments. – According to the money laundering regulations, companies have no obligation to report to Finanstilsynet about PEPs as such. Financial institutions and other reporting entities must report conditions that give rise to suspicion of money laundering and terrorist financing to Økokrim. This is apparent from Section 26 of the Money Laundering Act, Singstad replies in an e-mail.
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I don’t think he mentioned to all banks that he was a politically exposed person – news Norway – Overview of news from different parts of the country
