New Swedish Law: Cracking Down on Money Laundering and Terrorist Financing

Background

Stockholm, Sweden - A new Swedish law, called the Act on Measures against Money Laundering and Terrorist Financing (2014:307), was enacted on May 27, 2014. This law strengthens Sweden’s efforts against money laundering and terrorist financing. The Act includes amendments to the existing law, providing clearer definitions and increased penalties.

Scope of the Act

The Act expands the provisions against money laundering and terrorist financing found in the Swedish Criminal Code (2017:630 and 2017:660).

Money laundering is defined as:

1. Activities that conceal the origin of illegally acquired funds.
2. Promoting the possibility of someone else acquiring the funds or their value.

Money Laundering Offenses

Individuals charged with money laundering are those who:

1. Actively conceal the origin of funds gained through criminal activities.
2. Indirectly contribute to the disguise of such funds.

Penalties

The punishments for money laundering offenses are as follows:

1. For a regular offense: imprisonment for up to two years.
2. For a gross offense: imprisonment for at least six months and up to six years.

Attempting, preparing, or conspiring to commit a money laundering offense is also punishable.

Confiscation

The Act allows for the confiscation of:

1. Property used in an offense.
2. Property whose value can be traced back to the offense.
3. Properties intended to be used for criminal purposes.

Confiscation can be made from:

1. The offender.
2. Anyone involved in the offense.
3. Those who have gained from the illicit activity.

Implementation

The Act came into effect on July 1, 2014. Swedish Ministers Fredrik Reinfeldt and Beatrice Ask officially announced its implementation. This legislation is part of Sweden’s broader efforts to combat financial crimes, including the European Union’s (EU) Fourth Anti-Money Laundering Directive (AMLD4) requirements.