Financial Crime World

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Sweden Tightens Anti-Money Laundering and Counter-Terrorism Controls Amid Global Financial Crime Concerns

Sweden, a prosperous Nordic country and EU member-state with a highly developed economy, has traditionally been regarded as a safe financial destination. However, recent criminal scandals have damaged its reputation, including a $200 million money laundering scheme uncovered at Swedbank in 2019 and regulatory violations at Swedish gambling companies Kindred, ATG, and Pinbet in 2022.

Combating Financial Crime

To combat the threat of financial crime and protect the integrity of its financial system, Sweden is strengthening its anti-money laundering (AML) and counter-terrorism financing (CFT) controls, pushing for a more robust regulatory framework across the EU. As a result, firms must understand their AML/CFT obligations in Sweden and achieve regulatory compliance.

Sweden’s AML Regulator: Finansinspektionen

Finansinspektionen (FI), established in 1991 as a merger of the Bank Inspectorate and the Insurance Supervision Authority, is Sweden’s primary financial regulator. Under the authority of the Swedish Ministry of Finance, FI examines the “risks and control systems” of the country’s financial institutions, supervises compliance with statutes, ordinances, and regulations, and assesses the effectiveness of AML/CFT legislation.

Key Sweden AML Regulations

  • Money Laundering and Terrorist Financing (Prevention) Act: This is Sweden’s main article of AML/CFT legislation. It requires firms to implement a risk-based AML/CFT compliance program, assess individual customers’ risk profiles, monitor transactions for suspicious activity, and report AML alerts to Sweden’s Financial Intelligence Unit.

EU AMLDs

As an EU member-state, Sweden implements the Anti-Money Laundering Directives (AMLD), which harmonize AML/CFT regulations across the EU. The latest AMLD is the Sixth Anti-Money Laundering Directive (6AMLD), which came into effect on June 3, 2021.

AML/ CFT Penalties

  • Penalty for money laundering: In Sweden, the penalty for money laundering was capped at €50 million in 2020.
  • Prison sentences: Individuals found guilty of money laundering may face prison sentences of between six months and six years.

How to Comply with Sweden’s AML Regulations

To comply with Sweden’s risk-based AML/CFT regulations, firms must implement:

  • Customer due diligence
  • Transaction screening
  • Sanctions and watchlist screening
  • Adverse media screening

Recent AML Initiatives in Sweden

Sweden is pushing for the EU to implement its most recent AML/CFT proposals, including a single AML/CFT Rulebook and a centralized Anti-Money Laundering Authority. Discussions around both initiatives have gained broad consensus from EU member-states but the location of the new AMLA remains undecided.

Implementation of EU’s Markets in Crypto-Assets (MiCA) Regulation

Sweden will also implement the EU’s MiCA regulation, which comes into effect in 2024.

Next Generation AML Screening for Swedish Compliance

In an environment where Sweden’s AML/CFT landscape is changing rapidly, financial institutions need to be able to respond quickly to new risks and regulatory requirements. Ripjar’s Labyrinth Screening platform provides a powerful compliance advantage by enabling searches of thousands of structured and unstructured data sources, generating real-time financial intelligence.

Contact us

To discuss how Ripjar can support your AML compliance in Sweden, please [contact us](insert contact information).