Financial Crime World

Sweden’s Struggle Against Money Laundering and Terrorist Financing

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Sweden has been making significant strides in combating money laundering and terrorist financing, but despite its progress, several challenges still need to be addressed within the country’s regime.

The Threat of Money Laundering and Illicit Financial Activities

According to a recent report by the Swedish National Council for Crime Prevention (Brå), money laundering and other forms of illicit financial activities pose a significant threat to the stability of the financial system. The report highlights the importance of effective measures to prevent and detect these crimes, which can have devastating consequences on human suffering, justice, and democracy.

Efforts to Combat Money Laundering and Terrorist Financing

The Swedish government has been working closely with various agencies and stakeholders to combat money laundering and terrorist financing. Since 2018, the Swedish Police Authority has headed the coordination function, which brings together 16 agencies and the Swedish Bar Association to manage measures implemented to combat these crimes.

Challenges Remaining

However, despite these efforts, several challenges remain. The national risk assessment from 2019 identified systemic risks linked to:

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

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

  • Enhancing cooperation between agencies
  • Improving information sharing
  • Strengthening regulations

Regulatory Framework

Sweden’s efforts to combat money laundering and terrorist financing are based on two sets of regulations: administrative and penal. The Money Laundering and Financing of Terrorism (Prevention) Act aims to prevent and counteract the exploitation of financial activities for these purposes, while the penal regulations aim to prosecute individuals who engage in these crimes.

2020/2021 National Risk Assessment

The 2020/2021 national risk assessment identified several risks in the sectors defined under the Anti-Money Laundering Act, including terrorist financing. The report highlights the importance of continued efforts to address these challenges and prevent the exploitation of financial activities for illicit purposes.