The County Administrative Board ensures that companies take sufficient action to prevent being used for money laundering and financing of terrorism.
The Money Laundering Act
The purpose of the Act is to prevent businesses from being used for money laundering and financing of terrorism, without unduly affecting the companies' ability to conduct efficient business.
The new Act came into force on 1 August 2017. Through this Act, the EU's fourth money laundering directive has been incorporated into Swedish law.
New amount limits
The new Money Laundering Act reduces the lower limit for when the Act is to be applied to cash trading of goods from EUR 15,000 to EUR 5,000, and also includes both amounts for buying and selling. It is important to note that this can concern a number of related transactions that together add up to EUR 5,000 or more. Another new feature is that companies that are permitted to act as pawnbrokers now are subject to the Act.
Higher requirements of companies
The new Money Laundering Act makes more far-reaching demands of companies, which now must make a general risk assessment of its operations as well as a risk assessment of each customer. Other changes include new possible functions for internal control and an obligation to provide a whistle-blowing system for employees. The supervisory authorities are also given a new tool for more effective inspection, by being able to issue sanctions in accordance with the new Act.
Due to the new Money Laundering Act, the County Administrative Boards have drawn up new provisions and general advice. The provisions are aimed at clarifying and developing the demands made of companies and other business owners in the new legislation. The provisions and general advice began to apply on 1 January 2018.
What is money laundering?
Money laundering is when money from criminal activities, such as narcotics, trafficking, smuggling of human beings, tax offences, fraud, and robberies, is converted into assets that can be shown openly in the legal economy. Money laundering is a national and international problem. It is a threat to Swedish society which can have major negative consequences for Sweden's security and economy.
What is financing of terrorism?
Terrorism financing means funding terrorism. This does not only include direct funding of terrorism, but also collecting money or receiving, providing and forwarding money and assets in order to finance terrorism. It is a national and international threat to society, where even the smallest money streams can have major consequences by contributing to serious violent crime.
Is your company subject to supervision by the County Administrative Board?
Below are examples of services and activities that are subject to the County Administrative Board's inspection:
- Professional trading in goods, to the extent that the business concerns selling or buying for cash – in one or more related transactions – equal to at least EUR 5,000; e.g., car dealerships, jewellers, art and antiquities dealers.
- Business operating in accordance with the Pawnbrokers Act.
- Professional operations which concern accounting or auditing services – such as accounting consultants – which are not done by an approved or authorised accountant or registered auditing company.
- Professional operations which consist of giving advice in order to influence the size of taxation or fees – e.g. tax advisers.
- Independent lawyers who act in a client's name on their behalf during certain financial transactions and real property transactions – independent lawyers.
- Formation of legal persons, selling of newly formed limited liability companies and intermediation of legal persons – e.g. real estate agents and incorporators.
- Provision of a registered office or postal address and associated services – e.g. office hotels and post box companies.
The Companies Registration Office's anti-money laundering register
Companies and persons conducting certain business are liable to register in the Swedish Companies Registration Office's anti-money laundering register.
Anti-money laundering register application number 705 to report your company to the register
Please note that operations in accordance with the Pawnbrokers Act do not need to report to the anti-money laundering register.
For more information about money laundering and financing of terrorism, visit your County Administrative Board's website.
Reporting to the Finance Police
Suspected money laundering should be reported to the Finance Police. For more information about how this reporting is done, contact the Finance Police on +46 (0)10-563 68 00 or e-mail firstname.lastname@example.org.
When a company subject to the law has been added to the Companies Registration Office's anti-money laundering register, procedures for combating money laundering must be drawn up. The County Administrative Board has compiled the issues that a business must be able to handle in order to comply with the Act.