Anti-Money Laundering Act

Q: What is the Anti-Money Laundering Act?

The Anti-Money Laundering Act (2017:630) implements EU AML directives and sets requirements to prevent money laundering and terrorist financing, including CDD, KYC, risk assessments, monitoring and record-keeping.

Q: When does the Anti-Money Laundering Act become relevant?

It becomes relevant when an obliged entity establishes a customer relationship, carries out large or unusual transactions, or detects behaviour that deviates from the norm, triggering enhanced checks and reporting duties where appropriate.

Q: What are key considerations under the Anti-Money Laundering Act?

Organisations must implement proportionate AML policies and procedures, train staff, document due diligence and monitoring, and report suspected money laundering or terrorist financing without delay to the Financial Intelligence Unit.

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Glossary
Anti-Money Laundering Act

Explained – what is the Anti-Money Laundering Act?

The Anti-Money Laundering Act (2017:630) implements the EU Anti-Money Laundering Directives and aims to prevent the financial system from being used to conceal criminal proceeds or finance terrorism. It applies to a range of obliged entities, including banks, lawyers, estate agents and certain trading businesses. The Act sets out requirements on customer due diligence, reporting obligations and risk assessments, together with ongoing monitoring and record-keeping. In practice, this framework covers what is customer due diligence (CDD), what is KYC, what is ongoing monitoring and what is suspicious transaction reporting. The Anti-Money Laundering Act is a central element of the EU’s common regime (penningtvättslagen 2017 630).

When does the Anti-Money Laundering Act become relevant?

The Act becomes relevant whenever an obliged entity handles funds or transactions that could be linked to crime or terrorist financing. This is particularly the case when establishing new customer relationships, in connection with large or unusual transactions, and when a customer’s behaviour otherwise deviates from the norm. Internal risk assessments and staff training are also covered by the Act’s requirements and should form part of AML policies and procedures.

Illustration of Anti-Money Laundering (AML) compliance: staff reviewing customer documents with icons for payments, risk alerts and security checks, representing AML controls and due diligence.

Key considerations under the Anti-Money Laundering Act

Organisations within scope must adopt practical measures to comply and reduce the risk of breaches, supported by proportionate AML internal controls and AML documentation requirements.

Carry out an overarching enterprise wide risk assessment AML to identify and address money-laundering risks.
Establish internal routines (AML policies and procedures) for customer due diligence, ongoing monitoring and reporting.
Train staff regularly to identify and report suspicious transactions (what is suspicious transaction reporting).
Document all actions and decisions relating to customer due diligence, monitoring and reporting (AML documentation requirements).
Use trusted systems to monitor transactions and detect unusual patterns (what is ongoing monitoring).
Ensure reports are made without delay to the Swedish Police Authority’s Financial Intelligence Unit (Finanspolisen) where money laundering or terrorist financing is suspected; thereafter, report to the Financial Intelligence Unit as required.

By working systematically with these measures, an organisation reduces the risk of being exploited for criminal purposes and avoids legal sanctions.

Anti-Money Laundering Act

Why is the Anti-Money Laundering Act important?

The Act protects the integrity of the financial system and prevents criminal proceeds from entering the legitimate economy. It also helps to stop the financing of terrorism, which is a core security concern both nationally and internationally.

For companies and other obliged entities, compliance with the Anti-Money Laundering Act strengthens reputation and helps avoid significant administrative fines. Active anti-money laundering measures also demonstrate a serious commitment to societal responsibility.

From a business perspective, compliance builds trust among customers, investors and public authorities. Over time, this strengthens relationships and can be a competitive advantage.

The Act covers measures to prevent money laundering and terrorist financing, including requirements for customer due diligence, risk assessment and reporting, together with ongoing monitoring (what is customer due diligence; what is kyc).

Companies must comply when they operate activities listed in the Act, for example banking, estate agency services or other financial services. The Act also applies to certain professions, including lawyers and auditors.

A risk assessment involves identifying and analysing the risk that the business could be used for money laundering or terrorist financing. The work includes:

Mapping customers, services and distribution channels
Analysing geographical risks
Reviewing transaction patterns
Assessing internal routines and controls

It exists to protect the financial system and society from being exploited for criminal purposes and terrorist financing. It is based on the EU Anti-Money Laundering Directives and international standards.

Supervision is conducted by different authorities depending on the sector, for example the Swedish Financial Supervisory Authority (FI), the Swedish Estate Agents Inspectorate or the County Administrative Board; thereafter, the relevant supervisory authority oversees compliance.

Measures against the financing of terrorism are governed by the Anti-Money Laundering Act (2017:630), which covers preventive measures against both money laundering and terrorist financing. The Act requires customer due diligence, risk assessment, transaction monitoring and reporting to the Financial Intelligence Unit in cases of suspicion. The provisions are based on the EU Anti-Money Laundering Directives and are complemented by international standards, such as those issued by the Financial Action Task Force (FATF).