Sweden’s County Administrative Boards Face Special Challenges in Fight Against Money Laundering and Terrorist Financing

Sweden Launches Comprehensive Effort to Combat Money Laundering and Terrorist Financing

Stockholm, Sweden - The Swedish government has launched a comprehensive effort to combat money laundering and terrorist financing, but county administrative boards are facing unique challenges in this fight.

National Risk Assessment Highlights Systemic Risks

According to the latest national risk assessment, the country’s regime against money laundering and terrorist financing is generally succeeding, with the Financial Action Task Force (FATF) confirming that Sweden’s anti-money laundering efforts are effective. However, despite progress, several challenges remain, including:

• Systemic risks linked to strawmen: The use of fictitious identities or shell companies to hide illegal activities.
• Population registration issues: Inadequate population registration and exploitation of identities for criminal purposes.
• Registration errors: Errors in company registration that can create vulnerabilities for money launderers and terrorist financiers.

County Administrative Boards Play a Crucial Role

The county administrative boards play a crucial role in this fight, as they are responsible for:

• Collecting information on unregistered operators
• Registering companies

However, errors in registration can create vulnerabilities that money launderers and terrorist financiers can exploit. “The county administrative boards’ information collection is a critical component of our efforts to combat money laundering and terrorist financing,” said a spokesperson for the Swedish government.

Challenges Identified by National Risk Assessment

The national risk assessment also highlighted:

• Lack of resources and tools: Inadequate resources and tools available to combat money laundering and terrorist financing.
• Inadequate legal basis: Lack of legal framework in certain areas, which hinders effective action against money laundering and terrorist financing.

Coordination Function Established

To combat these challenges, the Swedish government has established a coordination function, headed by the Swedish Police Authority. The function consists of 16 agencies and organizations, including:

• County administrative boards
• Other stakeholders

The effort to combat money laundering and terrorist financing is based on two sets of regulations:

Administrative Regulations

• Aim to prevent and counteract the exploitation of financial activities and other business activities for the purposes of money laundering and terrorist financing.

Penal Regulations

• Aim to prosecute individuals who have engaged in illegal activities related to money laundering and terrorist financing.

National Risk Assessment Highlights Importance of Cooperation

The national risk assessment is the result of a joint effort between the members of the coordination function, including the county administrative boards. The report highlights the importance of cooperation and information sharing between all actors involved in combating money laundering and terrorist financing.

“We recognize that the fight against money laundering and terrorist financing requires a collaborative effort,” said the spokesperson for the Swedish government. “We will continue to work closely with our partners to identify and address the unique challenges facing county administrative boards and other stakeholders.”