REPORTING OF SWEDISH MONEY LAUNDERING CASES DOUBLES

UNCLAS STOCKHOLM 000490

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: KTFN EFIN PGOV PTER SW
SUBJECT: REPORTING OF SWEDISH MONEY LAUNDERING CASES DOUBLES


1. (SBU) Summary: According to recently released figures from
the Swedish Financial Police, there were 13,048 cases of
suspected money laundering amounting to $1.2 billion in 2008,
an increase of 116 percent compared to 2007. Banks did a
better job of reporting, increasing from 1,310 cases in 2007
to 7,232 in 2008. Alexandra Aurusell, Financial Supervisor
at the Swedish Financial Supervisory Authority (FI) told
Emboff on August 5 that Sweden is working hard to increase
awareness of the requirement to report, primarily through
outreach activities to various branch organizations, and has
established a special unit to supervise industries where
money-laundering occurs. End Summary.


2. (SBU) A new report from the Swedish Financial Police
(Finanspolisen) shows that the number of money laundering
cases reported in Sweden more than doubled in 2008.
According to recently released figures, there were 13,048
cases of suspected money laundering amounting to $1.2 billion
in 2008, an increase of 116 percent compared to 2007. Banks
did a better job of reporting, increasing from 1,310 cases in
2007 to 7,232 in 2008. "It's an indication that the banks
have implemented better procedures and have built intelligent
detection systems," Thomas Palmberg, Deputy Chief of the
Financial Police, told the Swedish daily Svenska Dagbladet on
August 3. Financial intermediaries also stepped up their
reporting of suspected crimes, and the police became better
at uncovering suspicious transactions on the internet at an
earlier stage.


3. (SBU) The report also cautioned that companies in
cash-intensive industries such as auto dealerships, real
estate brokers and casinos, continue to be less forthcoming
with reports of suspected money laundering. "I'm sure there
are considerably more cases of money laundering in
cash-intensive industries than what is reported," Palmberg
opined. Palmberg advocated amending Swedish laws to make it
easier to freeze suspicious money without first having to
provide concrete suspicions for crime, citing Norway as a
good example of a country that has implemented tougher money
laundering laws. Alexandra Aurusell, Financial Supervisor at
the Swedish Financial Supervisory Authority (FI) told Emboff
on August 5 that Sweden is working hard to increase awareness
of the requirement to report, primarily through outreach
activities to various branch organizations, and has
established a special unit to supervise industries where
money-laundering occurs. Aurusell stated that she hope to
have an English translation of the 3rd EU AML Directive
posted on the FI website in autumn 2009.


4. (SBU) The Financial Action Task Force (FATF) in its Mutual
Evaluation of Sweden (February 2006) rated Sweden "partially
compliant" or "Non-Compliant" on 20 Recommendations, two
core, two key and 16 other Recommendations. By February 2008
(the First Follow-Up Report),Sweden had already implemented
a number of measures to address these shortcomings and aimed
to correct several others by implementing the 3rd EU
Anti-Money Laundering Directive (AMU). The Swedish
Parliament adopted the new 3rd EU AML Directive in February
2009, and it took effect March 15, 2009. In addition,
secondary legislation that applies to all financial
institutions came into force on May 15, 2009.


5. (SBU) On August 5, Johanna Orth, Deputy Director of the
Banking Department at the Swedish Ministry of Finance, told
Emboff that while Sweden realizes that it still needs to make
further progress to prevent money laundering, Sweden advised
the FATF that it "might not be able to keep the timetable for
the legislative process," and that should the Lisbon Treaty
be adopted, it may offer a "legal basis for EU legislation
covering the freezing of assets of EU residents." Given the
amount of work Sweden was required to carry out to prepare
for its EU Presidency, Sweden requested and received
permission to report back to the FATF on the status of
additional corrective measures in June 2010. Orth commented
that Sweden will remain in "follow-up," until June 2010 at
which time it will seek removal.


6. (SBU) Comment: Both Aurusell and Orth complained that
legislation moves very slowly. Nevertheless, Sweden is
moving in the right direction, and the increased reporting of
suspected money-laundering cases confirms this. Translating
the 3rd EU AML Directive into English and making it available
on line to non-Swedish speaking actors in Swedish industry
should also improve reporting.
SILVERMAN