Sweden Country Summary

FATF Status

Sweden is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up to the last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Sweden was undertaken in 2020. According to the follow-up Evaluation, Sweden was deemed Compliant for 14 and Largely Compliant for 23 of the FATF 40 Recommendations. It was deemed Highly effective for 1 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.

Sweden exhibits a generally low incidence of corruption, with investors facing minimal risk of encountering corrupt practices, although some domestic corruption exists at the municipal level. While Swedish companies have faced scrutiny for bribery in international operations, the government maintains a high ethical standard, and recent efforts have been made to enhance inter-agency collaboration to combat organized crime, despite challenges such as understaffing in law enforcement and a shortage of prison space.

Sweden is recognized as a highly attractive destination for investment, characterized by a competitive and open economy, a well-educated workforce, and a stable political environment. The country benefits from low corporate tax rates and favorable conditions for foreign investors, including no taxes on dividends and a supportive regulatory framework. However, challenges such as high personal taxes, labor costs, and housing shortages may pose difficulties for new businesses, despite Sweden's strong performance in global competitiveness rankings and its reputation for innovation and technological advancement.