Financial Crime World

Sweden’s Crusade Against Money Laundering: A Comprehensive Approach

In the sixth meeting of the United Nations Convention against Corruption (UNCAC), Sweden provided a thematic compilation of its efforts to prevent money laundering in accordance with Article 14.

Sweden’s Approach to Counter Money Laundering (AML) and Terrorist Financing (CFT) Measures

Sweden has implemented stringent measures to counter money laundering and terrorist financing. Let’s explore the legislative framework, key actors, and the responsibilities of various groups.

Legislative Framework

Sweden’s legislative framework includes the Money Laundering Act of 2009 and Money Laundering Offences Act of 2014. These acts criminalize money laundering, setting responsibilities for various actors.

  1. Money Laundering Act of 2009: This act outlines the general provisions related to money laundering and terrorist financing.
  2. Money Laundering Offences Act of 2014: This act deals with the criminalization of money laundering and terrorist financing.
    • Criminalizing money laundering is crucial for discouraging such activities. The Money Laundering Offences Act criminalizes various acts as indicated in Sections 3-7.

Main Groups of Actors

Sweden’s system comprises five main groups of actors: law enforcement and controlling authorities, supervisory authorities, a self-regulatory organization, and obliged entities.

  1. Law enforcement and controlling authorities: Police, prosecution authorities, Swedish Tax Agency, Swedish Customs, and Swedish Estate Agents Inspectorate, among others, are key players in this group.
  2. Supervisory authorities: Financial Supervisory Authority, Swedish Gambling Authority, and the Supervisory Board of Public Accountants are part of this group.
  3. A self-regulatory organization: This group includes the Swedish Bar Association.
  4. Obliged entities: These entities, such as financial institutions, non-financial actors, and other non-financial entities, are subject to AML measures.
    • Responsibilities of obliged entities: Obliged entities must identify their customers, monitor transactions, maintain accurate records, and establish reporting mechanisms for suspicious transactions. The Money Laundering Act outlines when to conduct due diligence and when enhanced due diligence is required.

Fighting Money Laundering on the National and International Levels

Sweden has a robust framework for cooperation and information exchange among relevant authorities.

National Cooperative Structure

Sweden has a coordinating body called the “National Board for the Prevention of Money Laundering and Terrorist Financing” to supervise measures against money laundering and terrorist financing. The eight supervisory authorities, the Swedish Bar Association, the Swedish Financial Intelligence Unit (FIU), and the Swedish Companies Registration Office participate in this body.

Swedish Financial Intelligence Unit (FIU)

Finanspolisen, a part of the Swedish Police Authority, serves as Sweden’s FIU. Finanspolisen acts as the central hub for receiving and analyzing suspicious transactions reports from obliged reporting entities. After analyzing these reports, they’re disseminated for further investigation.

Secrecy Law and International Collaboration

Sweden’s general law on secrecy allows government agencies to share secret information with other Swedish and foreign agencies to combat money laundering and terrorism financing. Sweden is also a member of key international organizations, such as the Financial Action Task Force (FATF) and the Egmont Group, which facilitates global information exchange and collaboration.

Strengthening Measures and Ongoing Challenges

Maintaining an effective and up-to-date AML/CFT system requires constant attention and collaboration. Challenges include financial and technical capacity limitations in sharing and exchanging information, as well as coordination issues among agencies.

To address these challenges, adequately designed platforms for cooperation, information transfer, and knowledge development are crucial to ensure the longevity and effectiveness of AML measures.

Technical Assistance: None Required

Sweden does not require technical assistance in relation to the measures described in this article.