Head of Estonian FSA: Key to financial security lies in clear, simple norms

TALLINN – Kilvar Kessler, head of the Estonian Financial Supervision Authority (FSA), said in his remarks at the FinanceEstonia financial security forum on Wednesday that the key to Estonia's financial security lies in clear and simple norms and strong institutions.

"Since 2014, the Financial Supervision Authority has been directing businesses to mitigate money laundering risks and has also withdrawn licenses as a result. During the coronavirus crisis, in order to better mitigate risks, the FSA restricted the withdrawal of profits by banks and allowed banks to grant payment holidays," Kessler said in a press release. The head of the Estonian FSA added that nor did Estonia, unlike many other countries, have to support the financial sector with any amount during the 2008 financial crisis.

Both the war in Ukraine and the changing inflation numbers are affecting the financial markets. According to the head of the FSA, it is important for supervision that the financial sector has sufficient buffers and that cyber risks are also mitigated.

"It is good for the health of the economy when the financial sector and supervision have prepared for possible unexpected events in the financial market and accumulated buffers on the FSA's recommendation," Kessler said.

Organized by FinanceEstonia, the Financial Security Forum held at Swissotel Tallinn on Wednesday saw renowned Estonian financial and security experts discuss the role of the state, companies and people in ensuring financial security.