Financial Crime World

New Regulations Mandate Appointment of Officer for Anti-Money Laundering Compliance

Strengthening Anti-Money Laundering and Terrorist Financing Regulations

The Swedish government has introduced new guidelines requiring businesses to appoint an officer responsible for controlling and reporting obligations, a move aimed at strengthening anti-money laundering (AML) and terrorist financing regulations.

Key Responsibilities of the Appointed Officer

According to Chapter 6 of the Act on Measures against Money Laundering and Terrorist Financing (2017:630), the appointed officer will be responsible for:

  • Monitoring and controlling compliance with AML regulations
  • Providing guidance and training to employees
  • Ensuring that internal procedures are effective in preventing business use for money laundering or terrorist financing

Reporting Obligations

The appointed officer must also report to the board of directors or managing director and may appoint assistants to help with the role. The officer is expected to be independent of the functions being monitored and verified.

Independent Audit Function

The regulations emphasize the importance of an independent audit function, which will be responsible for:

  • Ensuring that models used by businesses are fit for purpose
  • Undergoing regular validation

Whistle-Blowing System

Businesses must establish a whistle-blowing system that allows employees, contractors, and other individuals involved in business activities to report suspicious transactions anonymously.

Periodic Reports

As part of the new regulations, businesses will be required to submit periodic reports to Finansinspektionen, the Swedish Financial Supervisory Authority, on their:

  • Activities
  • Risk assessments
  • Measures to prevent money laundering and terrorist financing

Effective Date

The guidelines come into effect on August 1, 2017, replacing earlier regulations issued by Finansinspektionen in 2009. This move is seen as a major step forward in strengthening Sweden’s anti-money laundering regime and combating financial crime.

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