Swedish Government Steps Up Efforts to Combat Money Laundering and Terror Financing

Challenges in Combating Money Laundering and Terrorist Financing

The Swedish government has identified several challenges in its efforts to combat money laundering and terrorist financing within its borders and abroad. According to a recent national risk assessment, the country faces systemic risks linked to strawmen, population registration, and exploited identities, as well as shortfalls in information sharing and resource allocation.

National Risk Assessment

The assessment was conducted by the Swedish National Council for Crime Prevention (Brå) and other agencies. It highlights the importance of trust in basic identification systems, which is critical to preventing money laundering and terrorist financing. The report also notes that while Sweden has been successful in combating these crimes, there are still several areas that require improvement.

Government’s Efforts to Combat Money Laundering and Terrorist Financing

To address these challenges, the government has established a coordination function led by the Swedish Police Authority, which brings together 16 agencies and organizations to combat money laundering and terrorist financing. This effort is based on two sets of regulations: administrative and penal.

Administrative Regulations

The administrative regulations, including the Money Laundering and Financing of Terrorism (Prevention) Act, are designed to prevent and counteract the exploitation of financial activities for the purposes of money laundering and terrorist financing.

Penal Regulations

The penal regulations, including the Act on Penalties for Money Laundering Offences, aim to prosecute individuals who have engaged in these crimes.

Key Takeaways

Sweden faces systemic risks linked to strawmen, population registration, and exploited identities.
Shortfalls in information sharing and resource allocation are also major concerns.
Trust in basic identification systems is critical to preventing money laundering and terrorist financing.
The government has established a coordination function to combat these crimes.
Administrative and penal regulations form the basis for Sweden’s efforts to combat money laundering and terrorist financing.

Brå Report: Money Laundering and Other Money Management - Criminal Money, Black Money, and Murky Money in the Legal Economy (2015)
Government Offices: Combating Money Laundering and Terrorist Financing
FATF Report: Sweden’s Measures to Combat Money Laundering and Terrorist Financing
National Centre for Terrorist Threat Assessment: Terrorist Threat Assessment - 2021

Stay Informed

For more information on the Swedish government’s efforts to combat money laundering and terrorist financing, please visit the websites of the Swedish Police Authority and the Swedish National Council for Crime Prevention.