"Suspending access to the enforcement register has significantly undermined the effectiveness of anti-money laundering efforts. The state cannot afford to be slow when dirty money is not," Finance Minister Jürgen Ligi (Reform) said.

One of the drivers behind the amendments was an assessment by Chancellor of Justice Ülle Madise who found that the state's access to banking data had not been regulated clearly enough in law. The legislation now explicitly states under what circumstances data may be requested, what data may be accessed and through which channels. Every request must be justified and all requests will be logged for later review.

Justice and Digital Affairs Minister Liisa Pakosta (Eesti 200) suspended queries made through the enforcement register by the Tax and Customs Board (MTA) and the Money Laundering Data Bureau (FIU) last summer until both agencies could convincingly demonstrate compliance with the new stricter rules.

Last summer, an inspection by the Office of the Chancellor of Justice found that government agencies had been accessing account holders' banking secrecy through the enforcement register without an adequate legal basis. According to the chancellor, state agencies made tens of thousands of requests to banks over a little more than a year.

Minister: Estonia the only country with an expressway for combating money-laundering

Speaking at the government's press conference on Thursday, Liisa Pakosta said the bill resolves issues that had been under discussion and left unaddressed for the past year.

"If the Money Laundering Data Bureau wants to use this simple 'pipeline' to view bank accounts, it must first issue an administrative act and justify the suspicions involved. People will also have the opportunity to challenge the administrative act," Pakosta said.

"We can use the opportunities offered by the digital state here both to prevent money laundering and to combat terrorism. Estonia is the only country in Europe with such an expressway for preventing money laundering. International law and European Union law actually only provide that institutions like the Money Laundering Data Bureau should be able to quickly check which bank account numbers or safe deposit box numbers a specific person or company has. But we are making use of the opportunities offered by the digital state and making the process very fast, while at the same time ensuring reliability. People know how they can challenge the process and the data tracker allows them to see that their data has been accessed. This debate will certainly continue in the Riigikogu. I also believe people should be notified more quickly through the data tracker that their data has been viewed," Pakosta said.

Finance ministry: Faster data exchange helps mitigate fraud damage

According to the Ministry of Finance, the bill approved on Thursday does not grant the Tax and Customs Board or the Money Laundering Data Bureau any new powers to access data protected by banking secrecy. "These powers already exist under current law. The amendment clearly stipulates that data may also be requested through the enforcement register — a secure and logged channel," the ministry said in a statement.

"In the case of the Tax and Customs Board, the amendment clarifies the authority to request banking data in tax proceedings when the agency has not been able to obtain the information directly from the data subject," the ministry said.

"For the Money Laundering Data Bureau, timely analysis of suspected money laundering is one of its main working tools and without it, effective crime prevention is not possible. A person will be notified of a bank account inquiry made by the FIU after five years, provided this does not hinder the detection or prevention of a crime or infringe on the rights and freedoms of others," the statement said.

According to the Ministry of Finance, similar access to financial data exists in most European countries, including Finland, Sweden and Germany. "Estonia is moving in the same direction to ensure equal capability in combating international crime."

"If the state receives the information only days or weeks later, the money is already gone. Faster and clearer data exchange helps stop or reduce the damage caused by fraud, money laundering and tax evasion," the ministry said.

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