Financial Crime World

Confidence in Financial System at Risk: Sweden’s Struggle Against Money Laundering and Terror Financing

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Sweden is facing a significant challenge in maintaining confidence in its financial system, as highlighted by a report by the Swedish National Council for Crime Prevention (Brå) in 2015. The report reveals that money laundering and terrorist financing can have devastating effects on human suffering, social justice, and democracy.

Challenges within Sweden’s Regime

Despite efforts to combat these crimes, a national risk assessment conducted in 2019 identified several challenges within the country’s regime. These include:

  • Systemic risks related to strawmen, population registration, and exploited identities
  • Shortcomings in information dissemination, access, and production
  • Coordination issues between agencies

Government Response

The Swedish government has acknowledged these risks and is working to address them through various measures. The coordination function, headed by the Swedish Police Authority since 2018, brings together 16 agencies to manage efforts against money laundering and terrorist financing.

Administrative and Penal Regulations

Sweden has implemented administrative and penal regulations to combat money laundering and terrorist financing, including:

  • The Money Laundering and Terrorism Financing Prevention Act (2017:630)
  • The Acts on penalties for money laundering offences (2014:307) and criminal responsibility for financing particularly serious crime

Continuous Efforts

The struggle against money laundering and terrorist financing is a continuous process that requires cooperation among various agencies and actors. Sweden’s efforts to combat these crimes are ongoing, with a focus on effective regulation to prevent and counteract the exploitation of financial activities.

International Concerns

Sweden’s efforts to combat money laundering and terrorist financing have also garnered international attention. The Financial Action Task Force (FATF) has praised Sweden’s progress in this area, noting that the country has implemented a comprehensive system for preventing and combating these crimes.

FATF Report

The FATF report, published in 2017, commended Sweden’s measures to prevent money laundering and terrorist financing, including its risk assessment framework and cooperation with other countries. However, the report also highlighted some areas where Sweden can improve, such as strengthening its legal framework and enhancing international cooperation.

Global Implications

The struggle against money laundering and terrorist financing is a global issue that requires coordinated efforts among countries. The FATF has identified several key challenges in this area, including:

  • Effective regulation
  • Robust risk assessment frameworks
  • Enhanced international cooperation

Sweden’s experience serves as an example of the importance of sustained efforts to combat these crimes. By addressing these risks and challenges, Sweden is contributing to a safer and more stable global financial system.

Read More

For more information on Sweden’s efforts to combat money laundering and terrorist financing, visit:

  • The Swedish National Council for Crime Prevention’s website: www.bra.se
  • The Government Offices’ webpage on combating money laundering and terrorist financing: www.regeringen.se