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Information related to money laundering

Qred Bank AB (”Qred“) is a bank whose activities are regulated by the Swedish Financial Supervisory Authority. Qred is therefore required to comply with the Law on the Prevention of Money Laundering and the Financing of Terrorism (2017:630) (”Money Laundering Act“). On this page we have collected information about what money laundering means, what is required by law and how this affects you as a customer.

What is money laundering and terrorist financing?

Money laundering is the conversion of money from criminal activity to hide or disguise the illicit origin of money. Money laundering can also mean trying to hide tax fraud earned from legitimate activities. With money laundering, criminals can use illegal money without arousing suspicion.

Financing terrorism means supporting terrorism financially. This can be through direct donations, but also indirectly through the collection, delivery or receipt of money to be used for terrorism. Funding can be done with legally obtained money, the ultimate purpose of which is to fund illegal terrorism.

Money laundering and terrorist financing are serious threats to our society. We at Qred adhere to our responsibility to prevent money laundering and terrorist financing and therefore need to ask certain questions to our customers.

Qred's duty to ask questions

The Money Laundering Act sets high standards for knowing the customer. Qred is obliged at all times to obtain information about customers and assess the risk of the service being used for money laundering or terrorist financing.

The requirements of knowing the customer affect both new and existing customers, as the information must always be kept up to date. Therefore, existing customers may also be required to update their information from time to time.

Due to the requirements for knowing the customer, Qred is obliged to verify the identity of the customer, the identity of the beneficial owner, the PEP information and the purpose and nature of the transaction. Failure to provide us with answers to the questions asked may result in us being unable to provide our services or having to terminate contracts with existing customers.

What does PEP mean?

PEP stands for Politically Exposed Person. It is a broad concept that encompasses individuals who have or have had public engagements or function in the management of an international organization, as well as the family and known employees of that person. “Important public function” means:

• The head of state or government, a minister and a deputy or deputy minister;
• Member of Parliament;
• Member of the board of a parliamentary political party;
• A judge in a high-level judicial body whose decisions cannot be appealed;
• High official;
• Senior officials of the inspection authorities and members of the governing bodies of the Central Bank;
• Ambassadors and diplomats; or
• Persons belonging to the administrative, management or supervisory bodies of state-owned enterprises.

What is the ultimate beneficiary?

The ultimate beneficial owner is the person or persons who ultimately own or control the company or association, or on whose behalf someone else acts. The real beneficiary is therefore always a natural person.

Ownership or control of a company can take various forms, for example owning more than 25% of the company's shares or the right to appoint or dismiss more than half of the board members.

If a person owns or controls a limited liability company together with related parties (spouse/cohabitant/registered partner, parents, children or spouses of children/cohabitants/registered partner), their control must be combined. For example, if two spouses each own 20% of the company, add up their shares. Then the ownership stake becomes 40% and both spouses are considered to be the final beneficiaries of the company.

If there is no final beneficial owner, the Chairman of the Board, the CEO, the trustee or the responsible partner must be declared as the final beneficial owner.

Why do we need to disclose the purpose of the transaction?

When applying for a business loan, you need to answer questions related to, for example, the operation of the company, turnover and the purpose of using the money. This is because Qred needs to understand the underlying factors behind the transaction, where the money will be spent and where the money for repayment will come from.

In some cases, Qred may need to ask you for additional information, such as contracts, receipts, invoices, or similar documents.