Sweden’s Dual-Pronged Approach to Money Laundering and Terrorist Financing: An Inside Look at the Anti-Money Laundering Act and Criminal Penalties

Sweden takes a proactive stance against money laundering and terrorist financing through a two-tiered legislative framework. This regulatory system includes the Money Laundering and Terrorist Financing (Prevention) Act (AMLA), also known as the Anti-Money Laundering Act, and the Act on Penalties for Money Laundering Offences.

Anti-Money Laundering Act (AMLA)

The Anti-Money Laundering Act forms the foundation of Sweden’s regulatory efforts by mandating reporting procedures for specific sectors to prevent inadvertent involvement in illicit activities. Covered entities under the Act are required to report any suspected money laundering or terrorist financing instances.

Reporting Procedures

Reports must be submitted immediately to the Swedish Financial Intelligence Unit (FIU), which is part of the Swedish Police, upon discovery of any suspicious activity. Submit reports to fipo@polisen.se.

Act on Penalties for Money Laundering Offences

While the Act on Penalties for Money Laundering Offences is parallel to the administrative regulations, it criminalizes the laundering of money and funding of terrorism. Violators face severe legal consequences.

Swedish Financial Supervisory Authority (Finansinspektionen)

The Swedish Financial Supervisory Authority (Finansinspektionen) plays a vital role in overseeing financial firms subject to the Anti-Money Laundering Act. Its mission is to ensure these entities remain compliant with the legislation, thereby deterring them from being exploited for money laundering and terrorist financing purposes.

Swedish Government’s Comprehensive Resource Center

The Swedish government offers a comprehensive resource center on its website for further information and measures against money laundering and terrorist financing.