SMS loan companies to routinely identify their customers

The SMS loan companies report that they have improved their routines to identify their customers after an investigation by Finansinspektionen.

FI will take the following measures

Through this investigation, FI has contributed to the companies improving their routines in order to identify their customers in accordance with the Act on Money Laundering and Terrorism Financing.

FI has also brought to the SMS loan companies' attention that their operations can be exploited for money laundering. The companies have also been informed that suspicions of money laundering should be reported to the Financial Intelligence Unit.

At the current time, the investigation does not call for any further actions by FI.

The investigation

SMS loans can be exploited for money laundering if a customer takes out a loan and pays it back in cash. If such actions occur systematically, large sums of money can be laundered through the SMS loan companies' operations. Therefore, FI investigated the routines of the four registered SMS loan companies that at the time of the review were the companies offering SMS loans in Sweden.

The companies have claimed in their advertising that it takes fifteen minutes for a customer to receive a loan. There have been reports in the media that loans have been granted in another person's name. FI has therefore scrutinised the companies' routines in order to guarantee the customer's identity.

The following companies were investigated:

• Meddelandelån Sverige AB
• Mobillån Sverige AB
• Folkia AB
• Ferratum Sweden AB

This category of companies are only obligated to register and are therefore not under FI's supervision. However, FI may request written information on the operations in accordance with the regulations on money laundering and financing of terrorism. According to law, FI may not control whether the replies are complied with in practice.

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