FI gains new powers to assess agents of foreign payment service providers

From 1 July 2025, the Swedish Financial Supervisory Authority (Finansinspektionen, FI) will assume an expanded mandate: to independently assess the fitness and propriety of agents representing foreign payment service providers in Sweden. To meet these new requirements, our AML lawyers provide advisory support to agents and payment institutions. The legislative change results from the alignment of Chapter 3, Section 27 of the Swedish Payment Services Act (2025:634) with the EU Payment Services Directive (PSD2). The new provision strengthens national supervision in the fight against money laundering and terrorist financing.

Purpose and scope of FI’s assessment

The assessment is intended to ensure that individuals and companies acting as agents for foreign payment service providers possess sufficient integrity and competence for the role. In connection with the assessment, FI will have access to data from the criminal records register and the police suspicion register.

A shift from risk indicators to a fit-and-proper test

This represents a clear departure from the previous framework, under which FI could identify risk indicators but could not carry out any fitness and propriety assessment. FI’s role will now be more active: following its assessment, the authority will transmit relevant information to the competent authority in the agent’s home state, which remains responsible for formal registration.

Direct alignment with EU law

The new wording of Section 27 is a direct adaptation of Article 28(2) of the EU Payment Services Directive. The earlier Swedish provisions were considered too narrow and lacked an explicit requirement for FI to perform an assessment. Government Bill 2024/25:134 clarifies that such an assessment is now included, including consideration of whether there is “reasonable cause to believe” that engaging the agent could increase the risk of money laundering or terrorist financing.

Addressing identified deficiencies

The change also addresses concrete shortcomings. According to FI, there are more than 1,200 agents acting for foreign firms in Sweden, and several have appeared in intelligence relating to organised crime. The legislative amendment creates a clearer and more effective tool to mitigate such risks.

Practical impact on foreign PSPs and Swedish agents

For foreign payment service providers, the reform entails a stricter requirement when establishing a presence in Sweden. A fitness and propriety assessment of the Swedish agent—based on both criminal record checks and the business plan—will be a precondition for operations. In practice, Swedish agents should prepare for greater transparency and enhanced documentation requirements.

Towards more consistent supervision across the EU

FI’s strengthened role is also an important step towards more uniform supervision within the EU. By more clearly reflecting EU law in national legislation, the risk of supervisory gaps is reduced—an outcome that, among others, the Swedish Tax Agency (Skatteverket) has called for in other contexts.

How Morling Consulting can help

Morling Consulting provides advisory support to both Swedish agents and international payment service providers operating across Europe. Our AML lawyers support the analysis of fitness and propriety assessments, compliance and engagement with the Swedish Financial Supervisory Authority. We have extensive experience helping both European and non-European actors navigate complex financial regulation.