The Swedish Financial Supervisory Authority, together with other agencies in Sweden’s sanctions compliance cooperation council, has published an assessment of how EU sanctions against Russia are being complied with in Sweden, highlighting suspected circumvention risks despite a sharp fall in direct exports. Direct exports from Sweden to Russia fell significantly between February 2022 and September 2024, but the assessment points to likely extensive indirect exports via other countries in breach of the sanctions framework. While there are few suspicions of specific sanctions violations, the report judges that underreporting is substantial. For the financial sector, which is affected by virtually all parts of the EU’s measures against Russia, the Authority notes that a 2024 review of 19 banks’ sanctions screening systems found generally good understanding of the rules and fit-for-purpose technical systems, alongside scope for several banks to strengthen their work. The cooperation council will now focus on identifying, mapping and analysing risks and methods for breaches of international sanctions and on initiating joint measures to prevent and detect sanctions offences.
Finansinspektionen 2025-11-20
Swedish Financial Supervisory Authority publishes joint assessment of compliance with EU sanctions against Russia
The Swedish Financial Supervisory Authority, with Sweden’s sanctions compliance cooperation council, assessed EU sanctions compliance against Russia, noting suspected circumvention risks despite declining direct exports. The report highlights likely indirect exports through other countries and substantial underreporting of violations. A 2024 review of 19 banks showed a good understanding of sanctions rules but identified areas for improvement in sanctions screening systems.