The Swedish Financial Supervisory Authority published two supervisory reviews of how securities firms and banks conducting securities business, and life insurance companies, manage anti-money laundering risks in activities linked to shares, funds and life insurance. The reviews conclude that firms can do more to reduce the risk that these products and services are exploited to launder money or conceal criminal proceeds. Across both sectors, risk assessments were often not sufficiently tailored to the specific risks in the business, with several firms using overly generic assessments and, in some cases, lacking their own analysis. The reviews also note that using third parties to sell products can weaken a firm’s control over its money laundering risks, and that firms can improve and streamline transaction monitoring and the reporting of suspicious activity to Finanspolisen. The authority indicated it may follow up individual firms’ practices through ongoing supervision or separate investigations.
Finansinspektionen 2025-01-31
Swedish Financial Supervisory Authority highlights weaknesses in anti-money laundering controls for securities trading and life insurance products
The Swedish Financial Supervisory Authority released supervisory reviews highlighting deficiencies in anti-money laundering risk management among securities firms, banks, and life insurance companies. The reviews found generic risk assessments and inadequate transaction monitoring, particularly when third parties are involved. The authority may pursue further supervision or investigations to address these issues.