SWEDEN Law and Practice Contributed by: Richard Engblom, Per Josephson, Anna Cumzelius and Amin Bell, Harvest Advokatbyrå
deferred over a period of not less than three to five years before it is paid or the right of owner - ship passes to the employee. The company shall also defer at least 60% of the variable remuner - ation for members of senior management and other employees belonging to the firm’s specially regulated staff with particularly high amounts of variable remuneration. A significant bank shall ensure that at least 50% of the variable remuneration to a member of sen- ior management consists of the firm’s shares, participations or instruments linked to the firm’s shares or participations, or other instruments that fulfil the conditions for Tier 1 capital con - tributions. Where appropriate and possible, the company shall allow the variable remuneration components within the meaning of the forego - ing. A significant bank shall ensure that the shares, participations and other instruments are subject to restrictions such that the employee may not exercise control over the instruments for at least one year, or longer depending on the bank’s long-term interests, after the ownership rights to the instrument have passed to the employee. This applies regardless of whether the variable remuneration has been deferred or not. The company shall ensure that deferred vari - able remuneration components are only paid or passed to the employee to an extent justifiable by the financial situation and the performance of the company, the business unit in question and the employee. The deferred portion of the remuneration shall also be able to be cancelled
shall, intervene. Depending on the specific cir - cumstances at hand, the board of directors may also be liable for damages.
5. AML/KYC 5.1 AML and CFT Requirements
The main AML and CTF legislation in Sweden is the Money Laundering and Terrorist Financ - ing (Prevention) Act (SFS 2017:630), transposing the fourth EU Anti-Money Laundering Directive ((EU) 2015/849) (as amended by the fifth EU Anti-Money Laundering Directive (2018/843/ EU)). This is further accompanied by the SFSA’s regulations (FFFS 2017:11) regarding measures against money laundering and terrorist financ - ing. The regulations impose a range of obligations on banks including: • general risk assessment and routines; • customer due diligence; • monitoring and reporting; • collaboration against money laundering and terrorist financing; • processing of personal data; and • internal monitoring and reporting of suspect - ed infringements. In addition, banks in Sweden should adhere to the EBA’s guidelines on the use of remote cus - tomer onboarding solutions (EBA/GL/2022/15), the EBA’s guidelines on the role of AML/CFT compliance officers (EBA/GL/2022/05) as well as the EBA’s guidelines on customer due diligence and the factors credit and financial institutions should consider when assessing the money laundering and terrorist financing risks associ - ated with individual business relationships and occasional transactions (EBA/GL/2021/02).
in full for the same reasons. Breaching the Requirements
Where a bank violates the requirements in the foregoing, the SFSA has the authority to, and
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