On March 1, 2026, the Act (2026:56) on Penalties for Unauthorized Financial Activities will take effect. Under this Act, it will be a criminal offense to engage in financial activities subject to licensing or registration requirements without approval from the Swedish Financial Supervisory Authority.

Previously, violations were primarily addressed through administrative measures, such as orders, penalties, or administrative fines. The new law introduces criminal liability. This means that anyone who, intentionally or through gross negligence, conducts an activity requiring a permit without a permit may be sentenced to a fine or imprisonment for up to two years. If the offense is deemed aggravated, the penalty may be imprisonment for a minimum of six months and a maximum of six years.

What does the law cover?

The law itself does not define what constitutes financial activity, but refers to other regulations, such as:
    • The Payment Services Act
    • The Electronic Money Act
    • The Banking and Financial Services Act
If an activity requires a permit or registration under these regulations, and such a permit or registration is lacking, liability may arise. This is particularly relevant for activities that:
    • Receives and processes payments between parties
    • Temporarily manages clients' funds
    • Uses its own accounts to hold client funds
    • Acts as an intermediary in payment flows

When is the crime considered aggravated?

In making this assessment, particular consideration should be given to whether:
    • The business has been conducted on a larger scale
    • Significant amounts handled
    • The operations have been systematic
    • The act was of a particularly dangerous nature
This means that platforms and marketplaces that handle large amounts of customer funds may be subject to a more rigorous review if they do not have a license.

Changes in the Risk Landscape for the Company and Management

The new law represents a significant tightening of regulations. It is no longer merely a matter of regulatory sanctions, but of potential personal criminal liability for representatives who, intentionally or through gross negligence, conduct activities subject to licensing without approval. This changes the risk profile for the board and management of companies that handle payments or customer funds.

What should companies do now?

Companies that:
    • Handles payments between customers and suppliers
    • Holds customers' funds
    • Involves arrangements similar to escrow, a deposit, or intermediary payments
should ensure that the operations have been properly analyzed in light of applicable regulations. It is particularly important to:
    1. Map the actual payment flow
    1. Determine whether the business is subject to a licensing or registration requirement
    1. Ensure that the appropriate regulatory framework is in place
Uncertainty regarding licensing requirements should not be left unaddressed in light of the new legislation.

What's next?

Contact us at Ping Payments. We’ll help you assess your business needs and ensure that you comply with regulations and enhance security.