Sweden’s Security Efforts Face Challenges in Combating Money Laundering and Terrorist Financing

Introduction

Sweden has been at the forefront of efforts to prevent money laundering and terrorist financing, but despite progress made, several challenges remain within its borders and abroad. A new report by the Swedish National Council for Crime Prevention (Brå) reveals systemic risks linked to strawmen, population registration, and exploited identities that pose a threat to Sweden’s financial system.

Challenges

According to the report, the country’s reliance on trust-based identification leaves it vulnerable to exploitation. Shortcomings in information dissemination, access, and production have also been identified as areas that require improvement.

Systemic risks linked to strawmen, population registration, and exploited identities
Trust-based identification vulnerable to exploitation
Information dissemination, access, and production need improvement

Measures Implemented by the Swedish Government

To combat these challenges, the Swedish government has implemented various measures, including:

Coordination Function Led by the Swedish Police Authority

The coordination function brings together 16 agencies, along with the Swedish Bar Association, to manage measures aimed at preventing money laundering and terrorist financing.

Regulatory Framework

Two sets of regulations are central to this endeavor: administrative and penal. The Money Laundering and Financing of Terrorism (Prevention) Act (2017:630) is a key piece of legislation, while the Acts on penalties for money laundering offenses (2014:307) and criminal responsibility for the financing of particularly serious crime (2002:444) aim to prosecute individuals engaged in money laundering or terrorist financing.

National Risk Assessment

The 2020/2021 national risk assessment identified several areas that require attention, including:

Dissemination, access, and production of information and knowledge within the Swedish regime
Need for more resources and tools to combat these threats

Conclusion

In a statement, the Government Offices emphasized the importance of combating money laundering and terrorist financing, citing the devastating consequences of financial crimes on human suffering, democracy, and confidence in the financial system. Cooperation between government agencies, law enforcement, and private sector stakeholders is crucial in preventing and prosecuting these crimes.

Additional Resources

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