Amendments to the swedish money laundering act come into force – accuity

Amendments to the the Act on Measures against Money Laundering and Terrorist Financing (2009:62) concerning Politically Exposed Persons, will enter into force in Sweden on 1st August 2015. Money laundering requirements At the same time, the Financial Supervisory Authority’s regulations and general guidelines (FFFS 2009:1) will lapse. Money laundering guidelines 1

The Act was created in response to the threat that terrorist financing and money laundering poses to the credibility of the financial system.

Money laundering in usa Institutions associated with the financing of terrorism run the risk of causing damage to the economy and as a consequence, Sweden is taking preventative measures to combat this threat.

The Financial Action Task Force (FATF) was founded in 1989 and currently has 36 members which work together to implement standards on both a national and international level. Canada anti money laundering regulations Sweden has been a member of this group since 1990. Money laundering regulations estate agents The FATF’s standards aim to promote the effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the international financial system.

The FATF has recommended that countries take decisive action regarding criminal activity and money laundering, stemming primarily from drug trafficking. Money laundering gambling The Swedish Act on Measures against Money Laundering and Terrorist Financing is therefore in place to ensure that institutions operating within Sweden are compliant with the FATF’s guidelines.

The international standards specify that organisations should take measures that go beyond basic customer due diligence to determine whether the customer or the customer’s beneficial owner is a Politically Exposed Person. Money laundering and terrorism The Swedish legislation has been adapted to conform to these international standards. Money laundering casino New law impacts significantly KYC processes of Swedish organizations regulated by local Financial Services Authorities. Money laundering consequences Larger amounts of checks must be now conducted. Latest news on anti money laundering Datasets which help to identify Politically Exposed Persons have to be used in KYC processes

The Act on Measures against Money Laundering and Terrorist Financing (2009:62) is being amended to include the definition of a Politically Exposed Person, including their family members and known associates. Anti money laundering uk ‘Family members’ refers to spouses, registered partners, cohabitants, children and their spouses, registered partners or cohabitants, and parents.

According to The Swedish Government (Regeringen) a Politically Exposed Person (PEP) is someone who is considered to hold a position of influence and is therefore potentially at risk of becoming involved in bribery and corruption. Ways of money laundering 2 The Money Laundering Act advises that institutions must take a risk-based approach when dealing with these individuals.

The starting point in identifying Politically Exposed Persons is to take some basic measures to gain accurate knowledge of the customer. Imf money laundering However, these basic measures are not always sufficient to detect whether the customer or beneficial owner is a PEP. Money laundering regulations 2012 To identify whether a customer is a PEP, it is advisable to run checks against a PEP list. Money laundering punishment 3

The Swedish government has stipulated that more stringent measures for customer due diligence should be taken against PEPs for at least 18 months after the individuals cease to hold their position of influence. Anti money laundering questions answers According to the standards, a person who has stopped exercising their function can continue to be considered a PEP as long as a risk assessment is carried out which justifies dealing with the individual as such. U s anti money laundering laws 4

It is possible to identify whether a person can be regarded as ‘politically exposed’ by performing checks against a PEP list. Money laundering types 5 Today, there is no government or authority that publishes and maintains an international PEP database because of the enormity of the task – the list of potential PEPs is huge and continually changing. Is money laundering a crime Instead, institutions rely on data providers, like Accuity, to undertake the continuous research and analysis required to maintain a comprehensive PEP database. Money laundering case studies 6 An organization should maintain records of the review and analysis of a PEP’s transactions for at least five years and must keep and continuously update risk assessment documentation. Anti money laundering and counter terrorism financing 7

If you would like to find out about how Accuity’s global PEP database can help you to comply with Swedish regulation, please contact