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Sweden is globally recognised for its strong digital foundations, progressive regulation, and high public trust in institutions. These strengths have translated into notable success in combating money laundering and terrorist financing (ML/TF). But despite this progress, Sweden’s financial system still faces evolving threats.
The country’s regulator Finansinspektionen addresses this in its ‘Prioritised risks related to money laundering and terrorist financing’ report published in March 2025. According to the report, the most significant threats today in Sweden lie within digital banking, small and mid-size banks, crypto actors, and client fund accounts.
The increasing complexity and anonymity available through new technologies require smarter, more agile solutions. Automated tools and AI can help institutions better understand ownership structures, detect suspicious transaction patterns, and adapt in real-time as threats evolve.
Sweden’s challenge now is to combine this technological advantage with strong compliance frameworks.
The state of financial crime compliance in Sweden
The Financial Action Task Force conducted its last mutual evaluation of Sweden’s AML controls in 2017 where it found that ‘while Swedish authorities have a reasonable understanding of these risks, the lack of a national AML/CFT coordination mechanism means that different authorities do not share the same understanding of the risks, or respond to them in a coordinated way.’
Sweden lost 3.44% of its GDP to financial proceeds in 2023, equating to 260 billion Swedish krona (SEK). According to the Napier AI / AML Index, an in-depth ranking of AI's impact on anti-money laundering, Sweden had an index score of 4.57 on a scale of 10, where lower scores indicate better performance. We found that 108.64 billion SEK could be returned to the economy if financial institutions use AI in the right way to tackle financial crime.
While regulation is robust, it is also in transition. The EU’s DORA regulation, effective January 2025, marks a new era of resilience for financial institutions. In addition to this, the upcoming regulations from the European Banking Authority and the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) are set to transform the face of compliance in the region.
Read: The EU’s Regulatory Technical Standards for AML: 4 key changes
What's next: fixing the gap with artificial intelligence
Despite Sweden’s strong technological foundations and investment in AI, financial institutions are facing a critical juncture. Many are still in the planning or early implementation phases of AI in AML. According to the Napier AI / AML Index, even Tier 1 banks expressed optimism about AI’s potential, but noted a disconnect between what’s technologically possible and what’s regulator approved.
Bridging the gap between innovation and regulation will be essential. With AI poised to play a transformative role, Sweden’s financial institutions have a unique opportunity to lead by example: combining cutting-edge technology with robust compliance to not only safeguard the financial system but also return billions to the national economy. The road ahead calls for bold, collaborative action where regulators and industry move in lockstep to future-proof Sweden’s defences against financial crime.
Read the full Napier AI/ AML Index
Photo by Jon Flobrant on Unsplash
