AML

The Swedish Securities Markets Association has a working group that monitors and handles issues related to anti-money laundering and terrorist financing. The association is one of the principals behind the Swedish Anti-Money Laundering Institute (SIMPT) and the association participates in the work of producing guidance that can be used in the interpretation and application of the money laundering regulations. The aim of the work of SIMPT is to establish good practice in the area and guidance that the industry can take into account and rely on.

Some definitions

Money laundering is an activity in which money, acquired through criminal activity, is transferred or transformed into assets that can be openly declared. The money being laundered can come from different types of crimes such as drug offences, robbery, trafficking, tax evasion, fraud, illegal arms and human trafficking and bribery.

Criminal activities and money laundering are international phenomena and often cross national borders. Using the banking system to hide the criminal origin of money, money laundering schemes vary and can be complex. They may also involve securities transactions in the capital market. Several of the money laundering scandals that have erupted in recent years have involved complex cross-border capital market transactions.

Terrorist financing can take place with both legitimate funds and with money acquired through criminal activities. Again, the financial system is used to transfer the money.

Swedish Anti-Money Laundering Institute (SIMPT)

For several years, the Swedish Securities Markets Association has been working on money laundering issues related to the securities market and is one of the founders of SIMPT (the Swedish Anti-Money Laundering Institute). Also participating in the cooperation are the Swedish Association of Finance Companies, the Swedish Investment Fund Association, the Swedish Savings Banks Association, the Swedish Insurance Federation, the Swedish Bankers’ Association and the Swedish Insurance Brokers’ Association.

Money laundering regulations have changed over the years and have become increasingly comprehensive. The regulations often leave room for interpretation and sometimes application difficulties arise when the rules collide with other regulations. The purpose of SIMPT is to produce a guide for financial firms’ interpretation and application of the rules on measures against money laundering and terrorist financing. The guidance focuses primarily on concrete issues that arise when applying the money laundering regulations.