Anti Money Laundering (AML) in Sweden
Money laundering and the financing of terrorism are evolving problems in Sweden. Similar to any developed financial center, Sweden’s financial sector is vulnerable to money laundering and terrorist financing, prompting the country to create an Anti Money Laundering (AML) system. Despite this vulnerability, the number of reported money laundering related crimes has fluctuated in the past few years.
The National Criminal Investigation Department (NCID) provides investigation and criminal intelligence support in cases involving crimes with nationwide or international ramifications. The NCID is divided into several main divisions, including economic crime, which is primarily engaged in the investigation of money laundering related crimes.
Money laundering was first criminalized in Chapter 9 of Sweden’s Penal Code. Today, penalties for money laundering in Sweden are generally low and there have been a limited number of convictions for the money laundering offence.
Currently, Swedish terrorist financing legislation does not specifically cover collecting and providing funds for a terrorist organization or an individual terrorist but has proven to be effective in the conviction of criminals.
The Economy of Sweden
Aided by peace and neutrality for the whole of the 20th century, Sweden has attained its high standard of living thanks to a mixed system of high-tech capitalism and generous welfare benefits.
Sweden possesses a modern distribution system, exceptional internal and external communications, and a skilled labor force. Timber, hydropower and iron ore make up the resource base for the country’s expanding foreign trade economy.
In the early 1990s, Sweden suffered a financial crisis following the collapse of its real estate market. Swedish banks experienced severe losses. While the government implemented stricter control of costs, the number of credit loses slowly decreased and by the end of 1996, Swedish banks showed improved results.
Currently Sweden is in the midst of a sustained economic upswing, bolstered by increased domestic demand and strong exports. This, combined with solid finances, has allowed the government to implement a reform program aimed at increasing employment, reducing welfare dependence and streamlining the state's role in the economy.
Troubled by the potential impact it may have on Sweden’s autonomy and economy, Swedish voters turned down entry into the EuroSystem in September 2003.
Banking in Sweden
The Riksbank is Sweden’s Central Bank. The Riksbank is responsible for maintaining Sweden’s monetary policy, overseeing that the system for making payments functions without disruption, issuing banknotes and coins, and managing Sweden’s reserve of gold and foreign currencies.
In Europe, banks represented on the major part of the financial market that offer all kinds of financial services are referred to as universal banks. Among the Swedish universal banks are:
Together these banks make up Sweden’s “big four” and have a strong position on the Swedish financial market.
In 1995, Sweden became a member of the European Union (EU). Sweden held a referendum on entering the European Monetary Union in September 2003. The Swedish people rejected participation with 56% voting against and 42% for.
Swedish Currency
The official currency of Sweden is the krona (SEK).
Until World War I, Sweden, Denmark and Norway utilized the krona as their shared currency. When the countries each broke off into their own respective currencies, Sweden chose to keep the name krona.
The krona is divided into 100 ore and comes in coins of 50 ore and 1 krona, and 5 and 10 kronor denominations. Notes are 20, 100, 150, 500, and 1000 kronor. Prices are rounded to the nearest 50 ore.
Other Key Statistics of Sweden
Time Zone: UTC+1 (6 hours ahead of Washington, DC during Standard Time).
Daylight Savings Time: +1hr, begins last Sunday in March; ends last Sunday in October.
Location: Northern Europe, bordering the Baltic Sea, Gulf of Bothnia, Kattegat, and Skagerrak, between Finland and Norway.
Population: 9,045,389 (July 2008 est.).
Labor Force: Approximately 2% work in agriculture, 24% in industry and 74% in services industries. The unemployment rate is 6.1%.
Languages Spoken: Swedish, small Sami- and Finnish-speaking minorities.
Trade Organizations: Sweden is a member of the United Nations (UN) and the European Union (EU).
