Anti-money laundering

Qred Bank AB (928 148 793), ("Qred") is subject to supervision by the Swedish Financial Supervisory Authority and is authorized to conduct banking activities. As a credit institution, Qred is obliged to comply with applicable anti-money laundering legislation and prevent money laundering and terrorist financing. Here we have gathered information about what money laundering means, what the law requires and how it affects you as a customer.

What is money laundering and terrorist financing?

Money laundering is any transaction that helps to conceal the origin of money derived from a criminal act. The purpose is to make it look like the proceeds were earned legally, and to hide the fact that it stems from crime. Money laundering occurs, for example, when proceeds from a tax evasion, drug crime, fraud and other financial crime are transferred from one person or company to another person or company with a seemingly good explanation.

Terrorist financing means providing financial support for terrorism. This can be done through direct donations, but also indirectly by collecting, giving or receiving money to be used for terrorism. It can be done with legal money, but the ultimate purpose, to finance terrorism, is illegal.

Money laundering and terrorist financing are serious threats to our society. This gives us a responsibility to prevent our products and services from being misused to launder money or finance terrorism. The regulations for preventing money laundering and terrorist financing are based on an EU directive. To follow up on this responsibility, we are committed to asking our customers some questions.

Qred's obligation to ask questions 

Strict requirements are set for good customer knowledge and the Money Laundering Act imposes a responsibility on Qred to assess whether there is a risk that our products and services will be used for money laundering and terrorist financing. 

The requirement for good customer knowledge includes both new and existing customers, where we must ensure that the information about our customers is up to date and current. It may therefore be necessary for us to ask you to update the company's information on a regular basis. 

A basic measure of good customer knowledge involves an identity check of the beneficial owner, any politically exposed persons (PEP) as well as the purpose and intended nature of the customer relationship. As a representative of a company, you will also be asked if the company has private individuals who directly or indirectly own more than 25 percent, or otherwise control the company. Representatives of the company or persons with the right to dispose of the company's funds must show a power of attorney and identify themselves.

If the customer does not wish to provide the information requested or does not provide a satisfactory explanation of the questions, Qred may be obliged to refuse to establish customer relationships or terminate the customer relationship. 

What is a politically exposed person?

Politisk A politically exposed person (PEP) is a natural person who holds, or has held, a senior public office or position in Norway or abroad. The same applies to persons who are close family members or known employees ("close relatives") of a PEP.

What is meant by public office or position?

• Head of state, head of government, minister or deputy minister
• Member of the National Assembly
• Member of the governing body of a political party
• Member of a higher court who makes a decision that can not or only exceptionally be appealed
• Member of the board of the National Audit Office, auditing court or central bank
• Ambassador, chargé d'affaires or military officer of higher rank
• Member of an administrative, leading or controlling body in a state-owned enterprise
• Director, board member or other person in the top management of an international organization
  

What is a real rights holder? 

A beneficial owner is a natural person who alone or together with close family members owns or controls more than 25 per cent of the ownership interest or votes in the business.

Close family member is defined as: Parents, spouse, registered partner, cohabitant and children, as well as the child's spouse, registered partner or cohabitant.

The ownership percentage includes both direct and indirect ownership.

By controllers is meant that one:

• Due to the holding of shares, participations or membership controls more than 25 percent of the total number of votes in the business.
• Has the right to appoint or remove more than half of the company's board members or equivalent key personnel.
• Due to articles of association, agreement with the enterprise or agreement with its owners, members, or equivalent, may exercise control in accordance with the aforementioned points.
• Due to voting rights along with others gaining a controlling majority.
  

Why do I have to state the purpose of the transaction?

When applying for a business loan, you must provide information about the purpose and intended nature of the customer relationship, ownership and expected transactions. This is because Qred needs to understand the background of the transaction, what the money will be used for and where the money will come from when the loan is repaid.

We point out that additional documentation requirements may arise where we request documentation of agreements, receipts, invoices or similar documents.