SWEDEN Law and Practice Contributed by: Robert Karlsson, Helena Rönqvist, Caroline Landerfors and Vilma Slättegård, Magnusson Law
4.3 Sources of Funds for Fiat Currency Loans The source of funds for loans varies between the different market actors. The primary sources of funds for banks and credit market companies authorised under the SBFBA are deposits from the public and the issuance of various securities, including covered bonds. Other actors may utilise lender-raised capital as a source of funds, and lending-based crowdfunding platforms normally source funds via investments from consumers and/or private businesses. 4.4 Syndication of Fiat Currency Loans Larger banks in Sweden structure and arrange syndicated loans for corporate clients. Such loans could, for example, be arranged for com - pany acquisitions or commercial real estate transactions. Peer-to-peer lending platforms, and other lend - ing platforms, may diversify the individual loans provided on their platforms between several lenders or investors to spread the risks for indi - vidual borrowers.
5.2 Regulation of Cross-Border Payments and Remittances
Sweden currently lacks an explicit regulatory framework for cross-border payments and remittances. However, tax provisions may apply dependent on the specific nature of each trans - action. The Swedish central bank has been part of Pro - ject Icebreaker, a collaboration with the central banks of Israel and Norway, as well as the Bank for International Settlements (BIS) Innovation Hub Nordic Centre. The initiative explored the possibility of cross-currency payments utilising virtual currencies between the central banks. The final report of the project, highlighting both the advantages and the challenges of the sys - tem, was published in March of 2023. AML remain a key focus for Swedish regulators. 6. Marketplaces, Exchanges and Trading Platforms 6.1 Permissible Trading Platforms Permissible Trading Platforms The definition of “trading platform” (trading venue) can be found in the SMA, which is an implementation of MiFID II. As the definition comes from EU law, only trading platforms that are within the EEA are covered. When referring to trading platforms outside of the EEA, terms such as “corresponding trading platforms in a third country” or similar are used. The definition of “trading platform” in the SMA encompasses the following three types of plat - forms, which are permissible in Sweden.
5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails
Payment processors may use existing payment rails or payment systems, or implement new ones. A company that wishes to provide pay - ments services must be authorised in accord - ance with PSA, the SBFBA or the EMA.
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