Financial Crime World

Swedish Financial Supervisory Authority’s Stringent Approach to Money Laundering and Terrorist Financing

The Swedish Financial Supervisory Authority (SFSA) plays a crucial role in ensuring the stability and efficiency of the Swedish financial system while protecting consumers and overseeing all entities active in Swedish financial markets. With a focus on Money Laundering and Countering the Financing of Terrorism (AML/CFT), the SFSA enforces rigorous regulations to prevent criminal activities.

Swedish Financial Supervisory Authority and AML/CFT Compliance

Swedish businesses must comply with the Swedish AML and Terrorist Financing Law (Anti-Money Laundering Act) and Money Laundering Crimes Criminal Code, supervised by the SFSA and the Swedish Bar Association for legal professionals.

Key Steps for AML/CFT Compliance

  1. Risk Assessment: Identify potential money laundering and terrorist financing risks by assessing products, services, customers, channels, and geographic factors.
  2. Adopt a Risk-Based Approach: Develop and implement a comprehensive risk-based AML/CFT Compliance Program.
  3. Implement Policies and Procedures: Establish effective AML policies, procedures, and guidelines.
  4. Maintain Customer Knowledge: Keep extensive knowledge about customers and their affairs to prevent ML/TF activities.
  5. Customer Risk Profiling: Create customer risk profiles and take precautions against potential risks.
  6. Employee Training: Equip employees with necessary skills to adhere to entity-wide AML procedures.
  7. Transaction Review: Regularly review transactions for suspicious activities.

Record Keeping and Reporting

Retain customer due diligence records for a minimum of five years post-measurement or after the end of a business relationship. Report suspicious transactions to the Financial Intelligence Unit (FIU), regardless of whether there is concrete proof of ML/TF activities.

Identifying Politically Exposed Persons and Sanctions

MemberCheck offers robust solutions to help businesses streamline the process of identifying Politically Exposed Persons (PEPs) and screening against sanctions, regulatory, official lists. Our software minimizes false matches through sophisticated scan filters and due diligence workflow, ensuring accurate and efficient PEP and sanctions checks. Benefits include easy access to customer details for further investigation and documentation for auditing purposes.

Consulting Local Regulatory Authority

This information is provided as general guidance only. Always consult your local regulatory authority for the most current and detailed information regarding your specific AML obligations and compliance.