Sweden’s Progress in Combatting Money Laundering and Terrorist Financing: A FATF Update
Stockholm, Sweden – In its latest assessment report by the Financial Action Task Force (FATF), Sweden has been appraised based on its technical compliance with the global anti-money laundering (AML) and counter-terrorist financing (CFT) standards. Here’s a summary of Sweden’s compliance status with the FATF Recommendations:
FATF Recommendations Compliance Status
- R.1 - Risk assessment & risk-based approach: Largely Compliant
- R.2 - National cooperation & coordination: Compliant
- R.3 - Money laundering offense: Compliant
- R.4 - Confiscation & provisional measures: Largely Compliant
- R.5 - Terrorist financing offense: Compliant
- R.6 - Sanctions related to terrorism & terrorist financing: Partially Compliant
- R.7 - Sanctions related to proliferation: Partially Compliant
- R.8 - Non-profit organizations: Largely Compliant
- R.9 - Financial institution secrecy laws: Conditional
- R.10 - Customer due diligence: Largely Compliant
- R.11 - Record keeping: Compliant
- R.12 - Politically exposed persons: Compliant
- R.13 - Correspondent banking: Largely Compliant
- R.14 - Money or value transfer services: Compliant
- R.15 - New technologies: Largely Compliant
- R.16 - Wire transfers: Compliant
- R.17 - Reliance on third parties: Largely Compliant
- R.18 - Internal controls & financial branches and subsidiaries: Largely Compliant
- R.19 - Higher-risk countries: Compliant
- R.20 - Reporting of suspicious transactions: Compliant
- R.21 - Tipping-off & confidentiality: Compliant
- R.22 - Designated non-financial businesses & professions: Customer due diligence: Largely Compliant
- R.23 - Designated non-financial businesses & professions: Other measures: Largely Compliant
- R.24 - Transparency & beneficial ownership of legal persons: Largely Compliant
- R.25 - Transparency & beneficial ownership of legal arrangements: Largely Compliant
- R.26 - Regulation & supervision of financial institutions: Compliant
- R.27 - Powers of supervisors: Compliant
- R.28 - Regulation & supervision of designated non-financial businesses & professions: Largely Compliant
- R.29 - Financial intelligence units: Compliant
- R.30 - Responsibilities of law enforcement & investigative authorities: Compliant
- R.31 - Powers of law enforcement & investigative authorities: Largely Compliant
- R.32 - Cash couriers: Partially Compliant
- R.33 - Statistics: Largely Compliant
- R.34 - Guidance & feedback: Largely Compliant
- R.35 - Sanctions: Partially Compliant
- R.36 - International instruments: Compliant
- R.37 - Mutual legal assistance: Compliant
- R.38 - Mutual legal assistance: Freezing & confiscation: Largely Compliant
- R.39 - Extradition: Compliant
- R.40 - Other forms of international cooperation: Compliant
Addressing Areas of Concern
Sweden has addressed several areas of concern to meet the FATF standards. However, the country continues to face challenges in implementing targeted financial sanctions related to terrorism & terrorist financing and proliferation (Recommendations 6 and 7). Additionally, customer due diligence for selected designated non-financial businesses and professions (R.22-R.23) remains an ongoing challenge.
Commitment to Strengthening AML and CFT Frameworks
These developments highlight Sweden’s ongoing commitment to strengthening its AML and CFT frameworks. By effectively countering the malicious use of money and funds to finance illicit activities, money laundering, and terrorist financing, Sweden continues to contribute to global efforts to combat financial crimes and ensure a more secure future.