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 has a low likelihood of corruption for investors, with high anti-corruption standards among companies, although some cases of bribery involving Swedish firms abroad have occurred. The OECD has criticized Sweden for inadequate corporate liability laws regarding international bribery, highlighting a lack of convictions and low fines, while Swedish officials argue that this reflects high ethical standards. Despite these concerns, Sweden maintains a stable governance structure and a strong legal framework against financial crimes, although challenges remain in addressing organized crime and ensuring effective law enforcement.

Sweden is recognized as a highly competitive and innovative economy, characterized by a well-educated labor force and a stable political environment. While it offers low corporate tax rates and favorable conditions for foreign investment, challenges such as high personal taxes, labor costs, and housing shortages can affect business operations. Despite these challenges, Sweden ranks eighth in the IMD World Competitiveness Ranking 2023, indicating favorable investment conditions.

Sweden is recognized as a highly favorable investment destination, characterized by a competitive and open economy, a well-educated labor force, and low corporate tax levels. While there are some structural challenges such as high personal taxes and labor costs, the overall investment climate remains attractive, bolstered by Sweden's strong rankings in global competitiveness and innovation. The government actively supports foreign investment through reforms and a transparent regulatory environment.