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 and 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, which 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.
AML Regulations in Sweden
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 for the Ministry of Finance. Since international crime organizations often carry out money laundering, several international organizations are involved in preventing money laundering. For instance, limits may apply to countries where the Council of European companies is allowed to do business. Currently, more than 25 countries are published by the EU, subject to the varying scope of trade sanctions.
Another international organization that prevents 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 explains what risk factors specific regions have in money laundering.
AML Obligations in Sweden
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 AML 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 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.
Anti-Money Laundering Act in Sweden
The Anti-Money Laundering Act aims 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 regulations 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 services 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 compliance programs 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 money laundering regulations. For more information, you can contact us or request a demo.