Financial Crime World

Sweden’s National Risk Assessment for Money Laundering and Terrorist Financing

Introduction

This report provides an update on Sweden’s national risk assessment for money laundering and terrorist financing. The assessment aims to identify and assess risks in sectors defined under the Anti-Money Laundering Act.

Challenges in Combating Money Laundering and Terrorist Financing

The report highlights that Sweden’s effort to combat money laundering and terrorist financing has been generally successful, but challenges still need to be addressed. These include:

  • Terrorist financing on a smaller scale: While it is a serious societal problem, even a small amount of money can go a long way in financing terrorist activities.
  • Systemic risks linked to strawmen, population registration, and exploited identities: These are identified as challenges that need to be addressed.

Shortcomings and Gaps in the Swedish Regime

The report emphasizes the importance of trust in basic identification and highlights the lack of resources and tools, as well as inadequate legal basis in certain areas. Previous risk assessments have also highlighted shortcomings regarding:

  • Dissemination, access, and production of information and knowledge

Coordination Function to Combat Money Laundering and Terrorist Financing

The assessment is managed through a coordination function consisting of 16 agencies, including the Swedish Police Authority.

Regulatory Framework for Combating Money Laundering and Terrorist Financing

The effort to combat money laundering and terrorist financing is based on two sets of regulations:

  • Administrative (Money Laundering and Terrorism Financing Prevention Act)
  • Penal (Acts on penalties for money laundering offenses and criminal responsibility for financing particularly serious crimes)

Areas of Application under the Anti-Money Laundering Act

The report focuses on the Anti-Money Laundering Act and its areas of application, which include risks related to terrorist financing.

Conclusion

Overall, the report aims to increase understanding of the risks Sweden is exposed to in the areas of money laundering and terrorist financing, and provide proposals for how the Swedish regime can reduce these risks.