Sweden

New Documents

The Bank for International Settlements, along with seven central banks published a report titled “Central bank digital currencies: foundational principles and core features”, which identifies key principles necessary for publicly available CBDCs, including the need to conform to AML requirements.

The Financial Action Task Force published a follow-up report on Sweden’s progress to address remaining anti-money laundering and counterterrorist financing deficiencies, highlighting that progress in strengthening measures resulted in a technical compliance re-rating on FATF Recommendation 26.

News

Enforcement Actions

Sweden’s Financial Supervisory Authority issued a SEK 1 billiona administrative fine against the Stockholm, Sweden-based financial institution for anti-money laundering deficiencies that resulted in the bank’s subsidiaries in the Baltics being exposed to elevated risks of money laundering.

Sweden’s Financial Supervisory Authority, Finansinspektionen, issued an administrative penalty against the Skövde, Sweden-based bank for its failure to comply with money laundering and terrorist financing requirements.


Important Facts

  • The U.S. State Department labels Sweden as a monitored jurisdiction. Sweden is not a regional financial center. Money laundering in Sweden generally occurs either through individuals or corporations that use the financial system to turn over illicit funds. Money laundering is further facilitated by criminals having contacts or acquaintances within, or influence over, corporations and actors within the financial system. Laundered money originates from sales of narcotics, tax fraud, economic crimes, robbery and organized crime. Money laundering is concentrated primarily in large urban regions, such as Stockholm, and is frequently conducted over the Internet, utilizing international money transfer services, gaming sites, and narcotics and illicit chemical vending sites. Organized crime is a growing concern in Sweden, but public corruption is not an issue. Sweden does not have an offshore financial center. The country does not provide offshore banking and does not readily attract foreign criminal proceeds because it does not have favorable banking regulations.
  • KYC covered entities: Banks; insurance companies; securities firms; currency exchange houses, providers of electronic money, and money transfer companies; accounting firms; law firms and tax counselors; casinos, gaming entities, and lottery ticket sales outlets; dealers of vehicles, art, antiques and jewelry; and real estate brokers
  • STR covered entities: Accountants; tax advisors; lawyers; real estate agents; casinos; banks; life insurance companies and insurance brokers; securities and fund companies; issuers of electronic money; and dealers of high-value goods
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: N/A; Convictions: N/A
-Source: 2015 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 14 High : 1
Largely Compliant : 23 Substantial : 4
Partially Compliant : 3 Moderate : 6
Non-Compliant : 0 Low : 0

Sweden's technical compliance was re-rated in a Oct. 2, 2020 follow-up report

BASEL i

Rank : 121/125
Score : 3.51/10

TRANSPARENCY INTERNATIONAL i

Rank : 4/180
Score : 85/100

Tax Justice Network i

Rank : 64/133
Score : 46/100