Swedish Financial Supervisory Authority Proposes Relaxed AML Rules for Swedish Businesses: What You Need to Know
The Swedish Financial Supervisory Authority (SFSA) has announced proposed amendments to the SFSA regulations on measures against money laundering and the financing of terrorism, or AML Regulations, effective March 26, 2024. One of the key proposed changes could mean Swedish businesses may no longer be required to appoint a dedicated Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Officer under certain conditions.
Key Proposed Changes
- Swedish businesses may no longer be required to appoint a dedicated AML Officer under certain conditions.
- The position itself must still be based within the obliged entity.
- Entities without an AML Officer must establish a control function for regulatory compliance.
- Reporting obligations to the board of directors and management regarding AML/CTF must be met at least once a year.
Current Regulations
Under the current Swedish Anti-Money Laundering and Counter Terrorism Financing Act, companies falling under its jurisdiction are mandated to appoint an AML Officer when obligated.
Proposed Changes
Under the SFSA’s new proposal, the appointment of an AML Officer would only be necessary when justified based on the scale and complexity of their operations.
Required Elements
- AML Officer assessment: businesses must assess whether it’s necessary to appoint an AML Officer based on the amended rules. Factors such as turnover, number of employees, and provided products and services should be considered. Document the assessment and its basis.
- Control function: entities without an AML Officer must establish a control function for regulatory compliance. Current tasks covering AML compliance and related reporting to the Police Authority should be reviewed and strengthened if necessary.
- Third-party engagement: businesses may evaluate third-party engagement for certain AML-related tasks, as delegated by the second paragraph of Chapter 6, Section 6 of the AML Regulations.
- Updating documentation: relevant internal documentation in accordance with AML Officer decisions and other relevant changes must be updated.
- Internal reporting: businesses must establish a routine for internal reporting to management about the company’s AML compliance.
Feedback and Deadline
Feedback from market participants is still being collected, and responses are due by January 24, 2024.
Legal Advice
For advice and further assistance on AML/CTF regulations and these proposed amendments, please contact Bird & Bird.