The Swedish Government proposes criminalisation of unauthorised financial activities
On 4 November 2025, the Swedish Government presented Bill (Proposition) 2025/26:42 to the Swedish Parliament (Riksdag), introducing criminal liability for individuals conducting financial activities without the necessary authorisation or registration. The aim is to strengthen the integrity of the financial system and reduce the risk of financial services being misused for criminal purposes.
Under the proposal, criminal liability would apply to anyone who, intentionally or through gross negligence, conducts financial activities without the required authorisation or registration. The scope includes all activities that, under Swedish law or EU regulations, require authorisation or registration with the Swedish Financial Supervisory Authority (Finansinspektionen), such as banking, financing, insurance, securities trading, fund management, payment services and currency exchange.
The proposal does not change the scope of authorisation or registration requirements. However, misjudgements about whether authorisation is required, or which type, may result in significantly stricter penalties than before.
The regulation does not expand the supervisory powers of Finansinspektionen. Instead, its impact lies in cooperation rules that allow prosecutors to involve the authority, and in coordination mechanisms between criminal and administrative measures through reporting and blocking provisions.
The proposed penalties include fines or imprisonment of up to two years for the offence of the normal degree, and imprisonment ranging from six months to six years for aggravated offences. The penalty level for aggravated offences enables the use of covert coercive measures under general rules.
Only natural persons can be held criminally liable. If an offence is committed within the scope of a legal entity’s operations, its representatives, such as board members, the CEO or de facto representatives, may be held accountable. In addition, prosecutors may initiate proceedings or issue penalty orders for corporate fines.
Several consultation bodies, including Finansinspektionen, have criticised the proposal’s broad scope and suggested that liability should be limited to sectors with particularly high risk of criminal activity, such as payment services, currency exchange or cryptoassets. The Government argues, however, that a narrower scope could lead to criminal activity shifting to other sectors.
Industry organisations, including the Swedish Investment Fund Association and the Swedish Securities Markets Association, have also raised concerns about the difficulty of determining whether a particular activity requires authorisation or registration – especially for financial institutions and alternative investment funds. The Government responds that criminal liability requires at least gross negligence, and that prosecution should not be pursued where there is genuine uncertainty about the requirement, particularly if even Finansinspektionen cannot provide clarity. Furthermore, the extent to which an individual has attempted to investigate whether their activity is subject to authorisation or registration may also be taken into account.
Next steps
The Council on Legislation has reviewed the proposal without objections. The Government presented Proposition 2025/26:42 on 4 November 2025. The Riksdag will now consider the bill. The proposed entry into force is 1 March 2026.
At DLA Piper, we are closely monitoring the development of this legislative proposal and its implications for financial market participants. Please feel free to contact us for further information or legal advice on how the proposed law may affect your business.
Contact: Joel Montin
