Why we need to ask questions
Know your customer
Nordiska, like all other credit institutions, is required by law to work to prevent money laundering in the financial system. This means that we need to have good knowledge of our customers and their transactions in order to be able to make risk assessments.
What does the Money Laundering Act mean
The Money Laundering Act, or Law (2017: 630) on measures against money laundering and terrorist financing exists for the purpose of preventing credit institutions from being used for money laundering or being involved in financing terrorism. The Swedish law is based on the EU Money Laundering Directive, which means that all financial companies within the EU are obliged to prevent money laundering. The law also covers companies and professionals outside the financial sector such as accountants, lawyers, real estate agents and more. Corresponding rules apply to measures against the financing of terrorism.
What is money laundering
Money laundering is when you try to turn money that has come from criminal activities into assets that can be reported openly. It is also an international phenomenon and often occurs across national borders. It can be money from drug crimes, trafficking, human trafficking, tax crimes, robberies, fraud, arms trafficking and more.
By abusing the banking system, those who want to launder money can make it more difficult to trace the criminal origins of money. The arrangement for money laundering can be more or less complicated. It is not just about cash transactions, but also about transfers and other services via, for example, the internet.
What is terrorist financing
Terrorist financing is collecting, providing or receiving money or other property for the purpose of supporting terrorism. It is thus about financial support for terrorism that can come both from legitimate sources of income and from criminal activities.
It is therefore important, and our duty, to understand the true intention of the money, say from a loan.
What do we ask and how does it affect me
In short, the Money Laundering Act means that Nordiska must make an assessment of the risk of being used for money laundering. The law places high demands on Nordiska to have good knowledge of its customers and their business. Nordiska must understand the purpose of the business relationship and also the customer's various transactions. The customer information Nordiska receives is treated confidentially and covered by bank secrecy.
The purpose of the transaction
When you want to make a payment or other transaction, you must be able to answer questions and show a valid ID document when someone at Nordiska requests it. This may apply to transactions that are perceived as unusual or for which Nordiska does not understand the background. Nordiska is then obliged to ask you about the purpose of the transaction, where the money comes from and what it will be used for, etc.
In some cases, Nordiska may also need to see agreements, receipts, invoices or other documents that prove your explanation.
How are you affected as a prospective customer of Nordiska
Nordiska is obliged to check the identity of those who want to become new customers, for example, when opening an account. In order to be able to perform requested services, the adviser may need to ask additional questions to gain more knowledge about you and the purpose of the transaction.
How are you affected if you are already a Nordiska customer
Even if you are already a customer, you must be able to show a valid ID document and provide additional information upon request. This may apply, for example, when you want to complete a transaction or have a new position.
People in a politically vulnerable position - PEP
Nordiska must know if you are a PEP, which means you have or had important functions in a state or in an international organisation. Nordiska must also know which customers are family members and known employees of a PEP.
Corporate customers
Company representatives must be able to show a valid ID document and proof you have the right to represent the company. In addition, Nordiska must have information on anyone who owns more than 25 percent of the company and anyone who has a controlling influence on the company, the so-called real principal. You must also be prepared to answer questions about the company's operations, organisation, its turnover and how you will be using Nordiska's services.
What happens if I do not answer the questions?
If you do not want or can not answer the questions about customer knowledge, we can not offer you our products and services. According to the Money Laundering Act, we may not provide services without having good customer knowledge. In order to continue using our products and services, you need to answer our questions.
If you are an existing customer who does not want to answer our questions, we may need to block products or services. We may eventually be forced to terminate your customer relationship with us if, despite reminders, you do not answer the questions or provide the information we need.
For further information on the content and meaning of the legislation, you are welcome to contact us at Nordiska.
Do you want to read more about the work to prevent money laundering and terrorist financing, visit the Swedish Bankers' Association.