Information regarding the Money Laundering Act
Qred Bank AB is a bank with a license to conduct banking operations and is registered with the Swedish Financial Supervisory Authority by law. Qred Bank AB is thus obliged to comply with the Act (2017:630) on measures against money laundering and terrorist financing (the "Money LaunderingAct"). Here we collect information about what money laundering means, what the law requires and how it affects you as a customer.
What is money laundering and terrorist financing?
Money laundering is to convert money that comes from criminal activities in order to conceal or conceal the illegal origin of the money. Money laundering can also involve trying to hide money earned from legal activities in an attempt to withhold the money from taxation. By laundering the money, criminals can use illegal money without raising suspicions.
Terrorist financing means financially supporting terrorism. This can be done through direct grants, but also indirectly by raising, providing or receiving money to be used for terrorism. It can be done with legal money, but the ultimate purpose, to finance terrorism, is illegal.
Money laundering and terrorist financing are serious threats to our society. At Qred, we take our responsibility to prevent money laundering and terrorist financing and must therefore ask our customers certain questions.
Qred's obligation to ask questions
The requirements for customer knowledge are high under the Money Laundering Act. Qred is always obliged to obtain information about our customers and assess the risk of our services being used for money laundering or terrorist financing.
Both new and existing customers are subject to the requirement of customer knowledge, as the information should always be kept up to date and up-to-date. Therefore, existing customers may sometimes need to update their information from time to time.
The customer due diligence requirement means that Qred must ensure the identity of the customer, the identity of the beneficial owner, information about the PEP and the purpose and nature of the transaction. Failure to answer these questions may result in the inability to provide our services or the termination of contracts with existing customers.
What is a PEP?
PEP is an abbreviation for Politically Exposed Person, or person in a politically exposed position in Swedish. It is a broad concept that includes a person who has or has held public duties, or a role in the management of an international organization, as well as the person's family and known associates. "Important public function" means:
- Head of State or Government, Minister or Deputy or Deputy Minister
- Member of Parliament or Member of Parliament
- Member of the Board of The Political Parliamentary Party
- High-level judicial bodies whose decisions cannot be appealed
- Senior officer
- Senior officials of audit authorities and members of the governing body of the Central Bank;
- Ambassadors or diplomatic envoys
- Persons who are members of the administrative, management or control bodies of state-owned enterprises
What is a real principal?
A beneficial owner is the person or persons who ultimately own or control an undertaking or association, or for whom someone else acts or acts in favour. Thus, a beneficial owner is always a natural person.
Owning or controlling an enterprise can take place in different ways, for example by owning more than 25% of the shares in the company or by having the right to appoint or remove more than half of the directors.
If a person owns or controls a limited liability company together with relatives (spouse/cohabitant/registered partner, parents, children and the children's spouses/cohabitants/registered partner), their control shall be taken together. For example, if two spouses own 20% each in a company, their share should be combined. Then the ownership share becomes 40% and both spouses are considered to be the beneficial owner of the company.
Why do we have to state the purpose of the transaction?
When you apply for a business loan, you have to answer questions about the company's activities, turnover and what the money will be used for, among other things. This is because Qred needs to understand the background of the transaction, what the money will be used for and also where the money will come from when the loan is repaid.
In some cases, Qred may need to see additional information such as contracts, receipts, invoices or similar documents.