SWEDEN Trends and Developments Contributed by: Niclas Rockborn, Arijan Kan and Rikard Sundstedt, Gernandt & Danielsson
tions, information and audit rights, ongoing monitoring and termination provisions, without relying on con - tractual assurances where other circumstances indi - cate a risk of diversion or circumvention. Materially Strengthened Enforcement Regime Individual liability Individual liability for sanctions violations is crimi - nal in nature under Swedish law. Liability therefore requires that the offence was committed intentionally or through gross negligence; ordinary negligence is insufficient. The International Sanctions Act establishes the fol - lowing offences. • Minor sanctions offence: a fine or imprisonment for up to six months. Prosecution may be brought only where justified in the public interest. • Sanctions offence: imprisonment for up to three years. Liability may arise where the offence is com - mitted intentionally or through gross negligence. • Aggravated sanctions offence: imprisonment for two to six years. This requires intent and may apply where the offence concerns property of very significant value, military equipment or dual-use items, or is otherwise particularly dangerous. • Repeated sanctions offence: imprisonment for two to six years where two or more connected inten - tional offences together concern property of very significant value. Attempts to commit a sanctions offence, minor sanc - tions offence or aggravated sanctions offence are also punishable. The general Swedish rules on participa - tion apply, meaning that a person who induces or facilitates an offence may be liable for incitement or aiding and abetting. Criminal liability attaches to natural persons and depends on the individual’s own acts, omissions or participation rather than their formal position. A direc - tor, officer or employee is therefore not liable merely because of their role. Gross negligence does not require an intention to violate sanctions, but repre - sents a substantial departure from the required stand - ard of care. Relevant considerations may include the person’s responsibilities, authority, knowledge and
response to identified risks. Proceeding despite clear warning signs or failing to carry out elementary checks may support a finding of gross negligence, depending on the circumstances. Corporate liability Legal persons cannot themselves be convicted of criminal offences under Swedish law. A company may nevertheless be subject to a corporate fine where an offence has been committed in its business and: • the company failed to take the measures that could reasonably have been required to prevent the offence; or • the offence was committed by a person in a senior position or with particular responsibility for supervi - sion or control. A corporate fine may be imposed even if no individ - ual has been convicted, provided that the underlying offence and the conditions for corporate liability are established. The corporate fine is based on a sanction value of between SEK5,000 and SEK10 million. For larger com - panies, a sanction value of at least SEK500,000 may be increased by reference to the company’s finan - cial position, resulting in a maximum fine of SEK500 million. Remedial measures and voluntary reporting may justify a reduction. Property connected with the offence may also be confiscated. Limited case law As the International Sanctions Act only entered into force in June 2025, there is not yet an established body of published case law interpreting its provisions. How - ever, investigations announced during 2026, including cases involving persons in senior corporate functions, indicate that sanctions enforcement is becoming more active. Published judgments and further guidance on gross negligence, corporate preventative measures and the classification of aggravated offences can therefore be expected as these cases progress. Sanctions Move Into Transactions and Disputes The expansion of the sanctions against Russia and the introduction of the International Sanctions Act have made sanctions a more prominent feature of Swedish
254 CHAMBERS.COM
Powered by FlippingBook