Financial Crime World

Sweden’s Efforts to Combat Financing of Terrorism Receive High Marks

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Sweden has received high praise for its efforts to combat the financing of terrorism (CFT) in the country. The assessment reflects the extent to which Sweden has implemented the technical requirements of the Financial Action Task Force (FATF) Recommendations.

Progress in Key Areas

  • Risk-Assessment Approach: Sweden has demonstrated a robust risk-assessment approach, effectively identifying and mitigating risks associated with terrorism financing.
  • National Cooperation and Coordination: The country has shown effective national cooperation and coordination with other countries and international organizations to combat CFT.
  • Laws and Regulations: Sweden’s laws and regulations have been strengthened to combat money laundering and terrorist financing.

Measures Implemented

  • Asset Confiscation and Provisional Freezing: Measures have been put in place to confiscate and provisionally freeze assets related to terrorism and terrorist financing.
  • Targeted Financial Sanctions: Targeted financial sanctions have been imposed on individuals and entities involved in terrorism financing activities.
  • Prevention of Misuse of New Technologies and Wire Transfers: Sweden has implemented measures to prevent the misuse of new technologies and wire transfers.

Regulations

  • Correspondent Banking: Regulations have been put in place for correspondent banking, money or value transfer services, and record keeping.
  • Transparency and Beneficial Ownership: The country has demonstrated a strong commitment to transparency and beneficial ownership of legal persons and arrangements.

International Cooperation

  • Mutual Legal Assistance: Sweden’s authorities have shown a strong commitment to international cooperation, including mutual legal assistance.
  • Extradition and Other Forms of International Cooperation: The country has also demonstrated a strong commitment to extradition and other forms of international cooperation.

Conclusion

While there are still some areas for improvement, Sweden’s overall efforts to combat the financing of terrorism have been impressive. The country’s compliance with FATF Recommendations is considered “largely compliant” in several areas, including customer due diligence, internal controls, and foreign branches and subsidiaries.