Financial Crime World

Title: Money Laundering and Terrorist Financing Risks in Swedish Businesses: Reporting Suspicions to the Swedish Financial Intelligence Unit

Background

The Swedish Police Authority has issued a brochure to help business owners (operators) understand their responsibilities and the risks of money laundering and terrorist financing. This article outlines the key points from the brochure.

Target Audience and Scope

The primary audience for this brochure includes business operators under the Anti-Money Laundering (AML) Act’s jurisdiction and under the supervision of county administrative boards. The following types of businesses are within the scope:

  • Accounting, auditing, and tax consultation services
  • Law firms and company formation services
  • Business brokering and business center or postbox agencies

Awareness and Risk Assessment

The brochure stresses the importance of operators being aware of money laundering and terrorist financing risks. Operators are required to:

  1. Review their businesses for potential risks.
  2. Report any suspicious transactions or activities to the Swedish Financial Intelligence Unit (FIU).
  3. Maintain a system for recording past business relationships and their nature.

Stakeholders and Their Roles

Key stakeholders include:

  • The Swedish Police Authority
  • The Financial Intelligence Unit (FIU)
  • County administrative boards in Skåne, Stockholm, and Västra Götaland

Operators should understand the roles and responsibilities of these entities.

Reporting Procedures

Operators must register their businesses and become a user of the FIU’s IT system, goAML, to report suspicious findings. The registration process and approval may take up to two working days.

  1. Discover and review suspicious transactions or activities internally.
  2. If suspicions persist, report to the FIU via goAML.
  3. Failure to report could make businesses complicit in money laundering and terrorist financing.

Red Flags and Indicators

The following behaviors or transactions may indicate money laundering or terrorist financing activities:

  • Unusual transactions
  • Customers with nervous behavior
  • Relationships with employees
  • Attempts to avoid personal contact
  • Lack of knowledge about due diligence procedures

Liabilities and Consequences

Operators who conduct transactions with risks of money laundering and terrorist financing, even without knowledge of the origin of the funds, may be held liable under Swedish law.

Conclusion

The Swedish Police Authority, in collaboration with the FIU, county administrative boards, and other stakeholders, aims to identify, map, and analyze money laundering and terrorist financing risks and methods in Sweden. Business owners must review this information and remain vigilant against such activities. For more information and resources, visit polisen.se/penningtvatt and search for the Coordination body.