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.

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                          82

World Governance Indicator – Control of Corruption             98

Corruption is not an obstacle to business in Sweden. Sweden's Penal Code criminalises most forms of corruption, and there is a strong rule of law exisiting in the country. Municipal-level procurement is identified as a corruption risk. Swedish legislation does not make a distinction between bribery and facilitation payments, meaning there is no exception for facilitation payments. Companies should be aware of the Code on Gifts, Rewards and other Benefits in Business, published as a supplement to Penal Code changes (in Swedish). The government of Sweden has implemented anti-corruption laws effectively. The OECD Working Group on bribery recognises the efforts made by Sweden to enforce its foreign bribery offence. For further information - GAN Integrity Business Anti-Corruption Portal

Sweden is generally considered a highly favorable investment destination. Sweden offers an extremely competitive, open economy with access to new products, technologies, skills, and innovations. Sweden also has a well-educated labor force, outstanding communication infrastructure, and a stable political environment, which makes it a choice destination for U.S. and foreign companies. Low levels of corporate tax, the absence of withholding tax on dividends, and a favorable holding company regime are additional incentives for doing business in Sweden.

Sweden’s attractiveness as an investment destination is tempered by a few structural business challenges. These include high personal and VAT taxes. In addition, the high cost of labor, rigid labor legislation and regulations, a persistent housing shortage, and the general high cost of living in Sweden can present challenges to attracting, hiring, and maintaining talent for new firms entering Sweden. Historically, the telecommunications, information technology, healthcare, energy, and public transport sectors have attracted the most foreign investment. However, manufacturing, wholesale, and retail trade have also recently attracted increased foreign funds.

Overall, investment conditions remain favorable. In the IMD World Competitiveness Ranking 2022, Sweden was ranked fourth and in the most recent World Economic Forum’s Competitiveness Report, Sweden ranked eight. The report highlighted Sweden’s strengths as: human capital (health, education level, and skills of the population), macroeconomic stability, and technical and physical infrastructure. Bloomberg’s 2022 Innovation Index ranked Sweden fifth among the most innovative nations on earth, a pattern reinforced when Sweden ranked first on the European Commission’s 2022 European Innovation Scoreboard and third on the World Intellectual Property Organization/INSEAD 2022 Global Innovation Index. Also in 2022, Transparency International ranked Sweden as one of the most corruption-free countries in the world – fifth out of 180. Sweden is perceived as a creative place with interesting research and technology. It is well equipped to embrace the Fourth Industrial Revolution with a superior IT infrastructure and is seen as a frontrunner in adopting new technologies and setting new consumer trends. U.S. and other exporters can take advantage of a test market full of demanding, highly sophisticated customers.

Climate and the environment are a central concern for the Swedish government, political parties across the political spectrum, businesses, and the public at large. Successive Swedish governments have actively lobbied for ambitious action to protect the environment and to curb greenhouse gases within a multilateral, internationally binding framework and by welcoming research, innovation, and investment within the fields of climate and the environment. The COVID-19 pandemic considerably impacted the Swedish economy, but following several fiscal stimulus packages, a successful vaccination rollout, and a relaxation of pandemic-related restrictions, Sweden’s economy recovered to pre-pandemic levels. Russia’s full-scale invasion of Ukraine in February 2022 caused further economic supply-side disruptions and was expected to contribute to a period of lower growth, high inflation, rising interest rates, and increased unemployment during 2022 and 2023.

Country Links

National Financial Intelligence Service (NFIS)​

Sveriges Riksbank​

Finansinspektionen