Financial Crime World

Sweden’s Battle Against Money Laundering and Terrorist Financing: A Joint Assessment by Swedish Authorities

Subtitle: The 2019 National Risk Assessment Report

This collaborative report, prepared by sixteen Swedish authorities including the Swedish Bar Association, provides an comprehensive evaluation of the current state of threats, vulnerabilities, and risks within the Swedish system for combating money laundering and terrorist financing.

Introduction

With increasing threats of money laundering and terrorist financing, the Swedish regime, crucial in the overall capacity to counteract these illicit activities in Sweden, is undergoing a significant evaluation.

Coordination Function and Target Audience

  • One of the primary roles of the coordination function is to issue annual national risk assessments.
  • The primary audience of the report includes the Government Offices of Sweden and the members of the coordination function.

Key Themes

Frontmen and Misused Identities

  • The Swedish regime relies heavily on trust in basic identification.
  • Misuse of identities places higher demands on identity checks conducted by public authorities and other actors.
  • The Swedish police identity system and e-identification are particularly vulnerable.

Access to and Dissemination of Information and Knowledge

  • A more strategic and efficient flow of information between and within the members of the coordination function is essential.
  • Reaching the full potential in combating money laundering and terrorist financing requires a more coordinated information exchange.

Resources, Tools, and Legislation

  • Insufficient resources, tools, and legislation exist for the coordination function in certain cases to effectively tackle these threats.
  • This is particularly evident in the realm of supervisory bodies.

Complex Large-scale Money Laundering Schemes

  • Detecting and preventing large-scale money laundering schemes remains a critical challenge.
  • Sweden needs to increase its capabilities in this regard.

Background and Context

  • Money laundering in Sweden is believed to be in the billions.
  • Economically, money laundering poses significant challenges and hampers economic growth.
  • Terrorist financing poses a security threat.

The Swedish Regime

  • The Swedish Money Laundering Act, Swedish Act on Penalties for Money Laundering, and Swedish Act on Criminal Responsibility for the Financing of Particularly Serious Crime in Some Cases form the legal basis for Sweden’s anti-money laundering and anti-terrorist financing efforts.
  • The Swedish regime involves all stakeholders concerned by the legislation, including supervisory authorities, law enforcement agencies, and operators.

Challenges and Solutions

  • This joint risk assessment focuses on the challenges the members of the coordination function face in their efforts to prevent, detect, and prosecute money laundering and terrorist financing.
  • The forthcoming risk assessment will include an analysis of various sectors and industries.

Conclusion

Providing valuable insights into the state of money laundering and terrorist financing threats within Sweden, this joint risk assessment highlights the importance of coordinated efforts to effectively counter these illicit activities.