Sweden is often perceived as a low-criminal country. However, it faces the role of a regional financial center and money laundering risks resulting from domestic crime, particularly tax crime. There is no national AML / CFT coordination mechanism. Money laundering and financing of terrorism pose problems in Sweden. Similar to advanced financial centers, Sweden’s financial sector is also vulnerable to money laundering and terrorist financing and encourages the country to establish an Anti-Money Laundering (AML) system. Despite this vulnerability, the number of reported money laundering crimes has fluctuated over the past few years.
The Swedish Financial Supervisory Authority (SFSA), which is a public authority whose official role is to promote stability and efficiency in the financial system and provide sufficient protection for consumers, is one of the key regulators. SFSA authorizes, supervises, and monitors all companies operating in the Swedish financial markets. SFSA is responsible to the Ministry of Finance. Since money laundering is often carried out by international crime organizations, there are several international organizations involved in the prevention of money laundering. For instance, limits may apply to countries where the Council of European companies is allowed to do business. Currently, there are more than 25 countries published by the EU, subject to the varying scope of trade sanctions.
Another international organization working to prevent money laundering is the Financial Action Task Force (FATF). Sweden is a member of FATF and tries to implement the standards published by FATF. The FATF regularly publishes explanations on what risk factors specific regions have in money laundering.
The fight against money laundering and terrorist financing is a priority for the Swedish government. This work takes place globally, at the EU level and the national level. In Sweden, some law enforcement and administrative institutions have obligations in this area, with large parts of the private sector. In the fight against money laundering and terrorist financing, you should consider the risks that your business can use for money laundering or terrorist financing as an operator, which is called the general risk assessment. Based on the hazards assessed, routines and guidelines will be created.
An essential part of money laundering and terrorist financing work is to get to know their customers — to gain customer information before trading or entering into business relationships. The scope of customer awareness measures is managed by your risk assessment of each customer relationship, called the customer’s risk profile.
The purpose of the Anti-Money Laundering Act is to prevent companies from being used for money laundering and terrorist financing. The law, comply within August 2017, is intended to implement the EU’s fourth AML directive. The Anti-Money Laundering Act is an administrative framework that applies to companies in specific sectors and different organizations, including credit institutions, financial institutions, auditors, external accountants and tax advisors, legal experts (under certain conditions), and gambling service providers. There are two primary laws aimed at money laundering in Sweden: Swedish Anti-Money Laundering and Terrorism Financing Law (Anti-Money Laundering Act) and the Money Laundering Crimes Criminal Code.
AML program of organizations subject to the Anti-Money Laundering Act should be in force. In other words, such organizations should comply with policies, measures, and other requirements to combat money laundering. Sanction Scanner provides solutions that help companies fulfill their AML obligations. Businesses can meet AML requirements in Sweden. With the AML data of more than two hundred countries, you can protect your company from financial crimes and comply with AML regulations.
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