Sweden’s Anti-Money Laundering Framework Strengthens Following FATF Review

The Financial Action Task Force (FATF) has upgraded Sweden’s rating on 10 out of 40 anti-money laundering and counter-terrorist financing recommendations, moving the country from enhanced to regular follow-up status. This positive assessment is a result of Sweden’s progress in strengthening its framework since its mutual evaluation in 2017.

Key Areas of Improvement

The FATF re-rated Sweden on several key areas:

• National Cooperation and Coordination: Sweden has strengthened its national cooperation and coordination efforts, improving its rating.
• Financial Institution Secrecy Laws: The country has made progress in addressing technical compliance deficiencies related to financial institution secrecy laws.
• Politically Exposed Persons: Sweden’s rating on politically exposed persons has been upgraded due to its efforts to address vulnerabilities.

Remaining Challenges

While Sweden has made significant improvements, it remains partially compliant with recommendations 7 and 21, and largely compliant with recommendation 8. The FATF also noted that progress in several areas, including transparency and beneficial ownership of legal persons and arrangements, was insufficient to justify a re-rating.

Importance of the Upgrade

The upgrade marks an important milestone in Sweden’s efforts to strengthen its anti-money laundering framework. The country is now subject to regular follow-up by the FATF, which will continue to monitor its progress in this area.

Sweden’s improvement on several key recommendations reflects the country’s commitment to addressing money laundering and terrorist financing. The FATF welcomes these steps and will continue to work with Sweden to ensure that its anti-money laundering framework remains effective and robust.