SWEDEN Trends and Developments Contributed by: Niclas Rockborn, Arijan Kan and Rikard Sundstedt, Gernandt & Danielsson
United Nations sanctions United Nations Security Council sanctions bind Swe - den under international law but do not create obliga - tions directly enforceable under Swedish law. They are normally implemented through European Union regulations. Pending European Union implementa - tion of certain United Nations asset freezing desig - nations, the Swedish Financial Supervisory Authority must adopt corresponding interim measures under the International Sanctions Act. Personal scope Criminal liability under the International Sanctions Act attaches to natural persons, while legal persons may be subject to corporate fines where an offence is com - mitted in their business; see Materially Strengthened Enforcement Regime below for more detail. Territorial scope The territorial scope of the applicable international sanctions is separate from the scope of Swedish criminal law jurisdiction. As Sweden does not maintain an autonomous nation - al sanctions regime, the territorial scope of the inter - national sanctions obligations applicable in Sweden is determined by the relevant European Union regula - tion. Sanctions adopted by the European Union typi - cally apply: • within the European Union; • to member state nationals, wherever located; • to entities incorporated under member state law, wherever they operate; and • to business conducted wholly or partly within the European Union. A company incorporated under Swedish law there - fore remains subject to European Union international sanctions in respect of its activities inside and outside the European Union, including activities conducted through a foreign branch. Swedish nationals are like - wise bound by the relevant prohibitions while abroad. Subsidiaries of Swedish parent companies domiciled outside of Sweden are not – solely by having a Swed - ish parent – automatically subject to European Union international sanctions. However, the Swedish parent
remains subject to its international sanctions obliga - tions under Swedish law, including applicable anti- circumvention prohibitions forming part of European Union sanctions applicable in Sweden. In addition, certain European Union sanctions explicitly require European Union persons and entities to undertake their best efforts to avoid any participation by their subsidiaries in activities that undermine the relevant sanctions. Where international sanctions adopted by the United Nations Security Council are implemented through European Union regulations (as is normally the case), their territorial scope in practice corresponds with that of other sanctions resolved by the European Union. The territorial scope must be distinguished from the jurisdiction of Swedish courts over an alleged inter - national sanctions offence. Swedish criminal jurisdic - tion is governed by the Swedish Penal Code (SFS 1962:700). An offence is regarded as having been committed in Sweden where: • the relevant act occurred in Sweden; • a legally required act should have been performed in Sweden; or • if a particular effect is an element of the offence, that effect occurred or was intended to occur in Sweden. In certain circumstances, Swedish courts may have jurisdiction over international sanctions offences com - mitted abroad. For offences under the International Sanctions Act, Swedish jurisdiction is not conditional on the conduct also being criminal in the country where it occurred. Foreign sanctions and competing legal obligations Sanctions adopted by other states are not binding as such under Swedish law. United States and United Kingdom sanctions may nevertheless be relevant to Swedish businesses because of their corporate struc - tures, contracts, financing or other jurisdictional con - nections. Compliance with such measures must be distinguished from compliance with sanctions appli - cable under Swedish law.
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