Financial Crime World

Title: New Swedish Legislation: Up to Two Years Imprisonment for Money Laundering Offenses

Introduction

The Swedish parliament, Riksdag, passed new legislation on May 15, 2014, focusing on penalties for money laundering offenses. The act, which amends the Swedish Penal Code, includes enhanced measures to combat money laundering and terrorist financing.

Scope of the Act

  • Section 1: Establishes the legal framework for criminal law provisions on money laundering
  • Foundation: Falls under the existing Act on Measures against Money Laundering and Terrorist Financing (2017:630)

Criminal Responsibility

Individuals

  • Under Section 3: Held accountable for money laundering crimes
    • Intentionally conceal the origin of money or property linked to criminal activities
    • Facilitate others appropriating the property
  • Penalty: Imprisonment for at most two years

Others

  • Under Section 4: Criminal responsibility for aiding or abetting in converting money or property from illegal activities
  • Without legitimate purpose

Penalty Enhancement

  • For gross offenses: Imprisonment for at least six months and at most six years
  • Factors: Value of objects involved, systemic or extensive criminal activities, and the dangerous nature of criminal measures

Business Operations and Money Laundering

Commercial Money Laundering

  • Punishable under Section 7: Imprisonment for at most two years for petty offenses, at least six months and at most six years for gross offenses
  • Applies to individuals who: Unknowingly facilitate money laundering but should have realized the suspicious nature of the transactions

Confiscation and Seizure of Property

Seized Property

  • Under Section 9: Property derived from money laundering offenses or criminal activities can be confiscated
  • Includes: Money, other property, or proceeds that represent the value of the ill-gotten gains

Seizure of Money, Claims, or Other Rights

  • Under Section 12: Permits seizure of money, claims, or other rights in the belief they may be connected to money laundering crimes
  • Requirements: The reasons for the measure must outweigh potential intrusion or detriment to the suspect or any opposing interests

Conclusion

  • Effective Date: July 1, 2014
  • On Behalf of the Swedish Government: Fredrik Reinfelt, Beatrice Ask (Ministry of Justice)