The Finnish city of Tornio lies about 3 kilometers northeast of the Swedish city Haparanda.
"From now on, people crossing border in Tornio will be checked by a procedure led by the police," the Finnish interior ministry said in a statement.
Meanwhile, according to the police in the northern Swedish county Norrbotten, about six hundred people had gathered, mostly on the Finnish side of the border, to form a wall at the border with Sweden.
"We oppose so many asylum-seekers coming to Finland," one middle-aged couple in Tornio told the public broadcaster YLE.
Peter Waara (Social Democrat), the Deputy Mayor of Haparanda, described the demonstration to news agency TT: "When I left, it was calm, but the police were still there. There were some people who I understood to be right-wing extremists who gathered at the bus station in Haparanda . . . they went and glared at people who didn't look Scandinavian, which is, to put it bluntly, a disgrace."
Refugees will no longer be able to travel further in Finland from Tornio before being registered as asylum-seekers, reports news agency TT.
People who apply for asylum will be sent to a temporary emergency shelter in the border city of Tornio, population circa 22,000.