Financial Crime World

Swedish Regime Faces Challenges in Combating Money Laundering and Terrorist Financing

Stockholm, Sweden - Despite being largely successful in combating money laundering and terrorist financing, Sweden’s national regime faces several challenges that need to be addressed.

Systemic Risks Remain a Concern

According to a recent report by the Swedish National Council for Crime Prevention (Brå), systemic risks linked to strawmen, population registration, and exploited identities remain a concern. The regime is also plagued by shortcomings in disseminating information and knowledge within its ranks.

Challenges Identified

  • Lack of resources and tools
  • Inadequate legal basis in certain areas
  • Shortcomings in disseminating information and knowledge within the regime’s ranks

Coordination Function: A Joint Effort

The 2019 national risk assessment highlighted the importance of coordination in combating money laundering and terrorist financing. The Swedish Police Authority, since 2018, has led a coordination function involving 16 agencies and the Swedish Bar Association to implement measures against these threats.

Key Regulations

  • Administrative regulations
  • Penal regulations
  • Money Laundering and Financing of Terrorism (Prevention) Act: serves as a central piece of legislation aimed at preventing and countering the exploitation of financial activities for money laundering and terrorist financing

Importance of Combating Money Laundering and Terrorist Financing

The Swedish regime’s ability to combat these threats is crucial in maintaining public trust and confidence in the financial system. As noted by the National Centre for Terrorist Threat Assessment, the destabilization of democracy can rapidly deteriorate if systematic use of finance for terrorism occurs.

Consequences of Inaction

  • Deterioration of public trust and confidence in the financial system
  • Risk of destabilizing democracy

Learn More

Read more about Sweden’s efforts to combat money laundering and terrorist financing in the Brå report: “Money laundering and other money management - Criminal money, black money and murky money in the legal economy.”

Source: Swedish National Council for Crime Prevention (Brå) Report 2015:22

Related Articles:

  • Combating money laundering and terrorist financing - Government Offices of Sweden
  • Sweden’s measures to combat money laundering and terrorist financing - FATF website
  • Terrorist threat assessment - National Centre for Terrorist Threat Assessment