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Sweden’s Fight Against Money Laundering and Terrorist Financing: A Complex Challenge

Stockholm, Sweden - As the world grapples with the devastating consequences of human suffering, increasing injustice, and the destabilization of democracy, the threat of money laundering and terrorist financing continues to pose a significant challenge for countries around the globe. Sweden is no exception.

The Threat of Money Laundering and Terrorist Financing

According to a recent report by the Swedish National Council for Crime Prevention (Brå), money laundering and terrorist financing are serious concerns that can have far-reaching consequences if left unchecked. The report highlights the need for a coordinated effort to combat these threats, which can undermine confidence in the financial system and threaten national security.

Challenges in Sweden’s Fight Against Money Laundering and Terrorist Financing

Despite Sweden’s efforts to combat money laundering and terrorist financing, several challenges remain. A 2019 national risk assessment identified systemic risks linked to:

  • Strawmen
  • Population registration
  • Exploited identities
  • Shortcomings regarding information dissemination, access, and production within the Swedish regime
  • Lack of resources and tools
  • Inadequate legal basis in certain areas

Addressing the Challenges

To address these challenges, Sweden has established a coordination function, led by the Swedish Police Authority, which brings together 16 agencies and organizations to share knowledge and best practices. This joint effort is crucial in identifying and assessing risks in sectors defined under the Anti-Money Laundering Act.

The report emphasizes the importance of administrative regulations, such as:

  • The Money Laundering and Financing of Terrorism (Prevention) Act
  • Penal regulations, including:
    • The Act on Penalties for Money Laundering Offences
    • The Act on Criminal Responsibility for Financing Particularly Serious Crime

These laws provide the legal framework for combating money laundering and terrorist financing.

Conclusion

The 2020/2021 national risk assessment highlights the need for a sustained effort to combat these threats. The report emphasizes that while some progress has been made, there are still significant challenges to be addressed. It is essential that Sweden’s financial sector and regulatory bodies continue to work together to prevent and detect money laundering and terrorist financing.

Read More

  • Swedish National Council for Crime Prevention (Brå) report: Money Laundering and Other Money Management - Criminal money, black money, and murky money in the legal economy. Report 2015:22 (Stockholm, 2016).
  • Government Offices: Combating Money Laundering and Terrorist Financing (Bekämpning av penningtvätt och finansiering av terrorism), published October 13, 2015 (updated October 29, 2020).

Sources

  • FATF’s website and Sweden’s measures to combat money laundering and terrorist financing.
  • National centre for Terrorist Threat Assessment (Nationellt centrum för Terrorhotbedömning) summary: Terrorist threat assessment - 2021.