Follow-Up Report Sweden - July 2018
25 July 2018 – As a result of Sweden’s progress in strengthening its framework to tackle money laundering and terrorist financing since their 2017 mutual evaluation, the FATF has re-rated the country on 10 of the 40 Recommendations and moved the country from enhanced to regular follow-up.
Sweden was in an enhanced follow-up process, following the adoption of their mutual evaluation, which assessed the effectiveness of their anti-money laundering and counter-terrorist financing (AML/CFT) measures and their compliance with the FATF Recommendations. In line with the FATF Procedures for mutual evaluations, the country has reported back to the FATF on the progress it has made to strengthen its AML/CFT framework.
This report analyses Sweden’s progress in addressing the technical compliance deficiencies identified in the mutual evaluation report.
To reflect this progress, the FATF has re-rated Sweden on the following Recommendations:
2 – National cooperation and coordination
9 – Financial institution secrecy laws
12 – Politically Exposed Persons (PEPs)
16 – Wire transfers
17 – Reliance on third parties
18 – Internal controls and foreign branches and subsidiaries
19 – Higher-risk countries
24 – Transparency and beneficial ownership of legal persons
25 – Transparency and beneficial ownership of legal arrangements
29 – Financial Intelligence Units (FIUs)
As a result of these re-ratings, Sweden no longer meets the criteria for enhanced follow-up. Therefore, the FATF moved the country to the regular follow-up process.
The report also looks at whether Sweden’s measures meet the requirements of FATF Recommendations that have changed since their 2017 mutual evaluation, taking into account any new measures since the mutual evaluation. The FATF agreed to maintain the ratings of Partially Compliant for Recommendations 7, Largely Compliant for Recommendation 8 and Compliant for Recommendation 21.
The FATF welcomes the steps that Sweden has taken to improve its technical compliance with Recommendations 1, 10, 22, 23 and 26; however, the progress was insufficient to justify a re-rating of these Recommendations.