Money Laundering and Terrorist Financing

Qred Bank AB (“Qred”) is a bank licensed to conduct banking activities in accordance with the Banking and Financing Business Act (2004:297). Qred is registered with the Swedish Financial Supervisory Authority, and obliged to comply with the Act (2017:630) on Measures against Money Laundering and Terrorist Financing (“AML Act”. This information highlights the AML Act requirements and how it affects you as a customer.

What is money laundering and terrorist financing?

Money laundering is the process of disguising the origins of illegally obtained money. By laundering money, criminals can use illegal funds in the economy without raising suspicion.

Terrorist financing is the practice of providing financial support or funding to terrorists or terrorist organizations to facilitate their activities. These transactions may involve legal funds, but with the ultimate purpose to finance terrorism. 

At Qred, we take our responsibility to prevent these activities seriously, since money laundering and terrorist financing pose serious threats to our society. 

Qred's obligation to ask questions

Under The AML Act, Qred is required to gather information about our customers and assess the risk that our services could be used for money laundering or terrorist financing. Qred must understand the purpose of the business relationship and how the products will be used and therefore, our customers must answer questions before and during the business relationship. Failure to answer these questions may result in termination of the products and services. 

What is a PEP?

PEP stands for Politically Exposed Person. To be able to assess certain risks, we need to know if you are, or have been, a Politically Exposed Person (PEP) or if you are a family member or associate of such a person. 

A PEP is defined as a natural person who holds, or has previously held, an important public function in a state or in an international organisation. Examples of public functions that would mean that a person is a PEP are Heads of State or Government, ministers, members of parliament, ambassadors, heads of missions and senior officers of the armed forces

What is a beneficial owner?

A beneficial owner is the person or persons who ultimately own or control a company or an association, or for whom someone else is acting. A beneficial owner is always a natural person.

Owning or controlling a company can occur in various ways, such as owning more than 25% of the company's shares or having the right to appoint or remove more than half of the board members.

Under the AML Act, Qred is obliged to identify and verify the identity of our customers' beneficial owners.