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DE RUEHSM #0490 2171227
ZNR UUUUU ZZH
P 051227Z AUG 09
FM AMEMBASSY STOCKHOLM
TO RUEHC/SECSTATE WASHDC PRIORITY 4602
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY

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