Sweden’s AML Efforts Receive Mixed Reviews
International watchdogs have given Sweden mixed ratings on its efforts to combat money laundering, highlighting both progress and areas for improvement.
Risk Assessment and National Cooperation
Sweden received a largely compliant rating (LC) on requirement R.1, assessing the country’s ability to identify and mitigate money laundering risks. However, the Financial Action Task Force (FATF) noted that Sweden still needs to improve its national cooperation and coordination mechanisms.
Key Areas for Improvement
- National Cooperation: Sweden should strengthen its collaboration with other authorities to ensure a coordinated approach to combating money laundering.
- Risk Assessment: The country should continue to develop its risk-based approach to identify and mitigate potential risks.
Money Laundering Offence
Sweden received an LC rating on requirement R.3, which deals with the definition of money laundering as a criminal offence. However, the FATF expressed concerns about the country’s lack of clarity in defining what constitutes a money laundering offence.
Key Areas for Improvement
- Clear Definition: Sweden should clarify its definition of money laundering to ensure consistency and effectiveness.
- Consistency: The country should ensure that its laws and regulations are consistent with international standards.
Confiscation and Provisional Measures
Sweden also received an LC rating on requirement R.4, which focuses on confiscation and provisional measures. However, the FATF noted that Sweden still needs to improve its procedures for freezing and confiscating assets related to money laundering.
Key Areas for Improvement
- Procedures: Sweden should develop more effective procedures for freezing and confiscating assets.
- Transparency: The country should ensure transparency in its procedures to prevent any potential abuse.
Targeted Financial Sanctions
In contrast, Sweden received a partially compliant (PC) rating on requirement R.6, which deals with targeted financial sanctions related to terrorism and terrorist financing. The FATF noted that Sweden has made progress in this area, but still needs to improve its procedures for implementing UN Security Council resolutions.
Key Areas for Improvement
- Procedures: Sweden should develop more effective procedures for implementing UN Security Council resolutions.
- Transparency: The country should ensure transparency in its procedures to prevent any potential abuse.
Other Areas of Improvement
Sweden also received LC ratings on requirements R.10 (customer due diligence), R.11 (record keeping), and R.12 (politically exposed persons). However, the FATF noted that the country still needs to improve its procedures for identifying and mitigating risks associated with these areas.
Key Areas for Improvement
- Customer Due Diligence: Sweden should develop more effective procedures for conducting customer due diligence.
- Record Keeping: The country should ensure that its record keeping procedures are accurate and up-to-date.
- Politically Exposed Persons: Sweden should develop more effective procedures for identifying and mitigating risks associated with politically exposed persons.