Why are estate agents covered by AML rules?
Across the EU, estate agents are obliged entities. AMLR, Regulation (EU) 2024/1624, covers estate agents and other real estate professionals when they act as intermediaries in real estate transactions (Article 3(3)(d)). Letting is included where the monthly rent is at least EUR 10,000. AMLR applies directly from 10 July 2027 (Article 90).
Today, Swedish agents apply the Swedish AML Act (2017:630). Under Chapter 1, Section 2, first paragraph, point 14, it covers estate agents and estate agency firms with full registration, or special registration for rental brokerage, under the Swedish Estate Agents Act (2021:516). According to the Swedish Estate Agents Inspectorate (Fastighetsmäklarinspektionen, FMI), agents registered only for rental brokerage are not covered.
Sweden's national risk assessment 2024/2025 rates estate agents as one of four high-risk sectors from a national perspective. Property is an attractive way to launder and invest criminal proceeds.
Who supervises you, and who is responsible for what?
In Sweden, FMI supervises registered estate agents and firms, including their compliance with the Swedish AML Act. FMI's AML regulations and general guidelines are KAMFS 2021:3.
Responsibility is shared. Where agents are employees, the firm answers for the general risk assessment and procedures, among other things. The agent answers for CDD on each assignment (Chapter 2, Section 16 of the Swedish AML Act and FMI's guidance).
Who is the customer in a property sale?
Under the Swedish AML Act, the customer is whoever has entered, or is about to enter, into a contractual relationship with the agent (Chapter 1, Section 8, point 4). In a normal sale, that is the client, usually the seller.
AMLR goes further. Under Article 19(6)(c), real estate agents must treat both parties to the transaction as customers.
The seller
The seller is normally a business relationship. You apply CDD when the relationship is established (Chapter 3, Section 4). According to FMI, you verify the seller's identity before the assignment agreement is signed.
The buyer
The buyer is not your client, but can still be covered. The Swedish AML Act requires CDD for occasional transactions of EUR 15,000 or more (Chapter 3, Section 4, second paragraph). FMI's guidance is to verify the buyer before the purchase contract is signed. Without CDD on the buyer, FMI says you may not take part in the signing.
From 10 July 2027, Article 23(1) AMLR sets a specific timing rule for real estate agents. You verify identity after the seller or lessor accepts an offer, and in all cases before any funds or property are transferred.
Representatives, estates and companies
- Representative: Verify both the identity and the authority of the representative (Chapter 3, Section 7, third paragraph). Keep a copy of the power of attorney (Section 18, KAMFS 2021:3).
- Estate of a deceased person: Obtain the estate inventory to see who the heirs are (Section 19, KAMFS 2021:3). According to FMI, you verify every heir's identity, even when a representative acts for the estate.
- Legal person: Check the representative's authority against a certificate of registration no more than one month old (Section 19, KAMFS 2021:3). Identify the beneficial owner and understand the ownership structure (Chapter 3, Section 8).
Which checks must you carry out?
The core measures apply to every customer:
- identify the customer and verify their identity (Chapter 3, Section 7)
- establish whether there is a beneficial owner (Chapter 3, Section 8)
- assess whether the customer or beneficial owner is a politically exposed person (Chapter 3, Section 10)
- check whether the customer is established in a high-risk third country (Chapter 3, Section 11)
- establish the purpose and nature of the relationship (Chapter 3, Section 12)
- set the customer's risk profile (Chapter 2, Section 3).
Beneficial ownership also matters for private individuals. FMI's general guidelines cover straw buyers: someone buys on behalf of another person but presents as buying for themselves. The person behind them can then be the beneficial owner.
Purpose and nature means asking why the seller sells and why the buyer buys. FMI also mentions financing and earlier purchases or sales. For the basics, see our KYC guide.
How do you establish financing and source of funds?
FMI says you must ask how the purchase will be financed, and sometimes see agreements, receipts, invoices or other documents that confirm the answer.
Where risk is high, checks must be particularly thorough (Chapter 3, Section 16). FMI's general guidelines give examples of evidence:
| The customer says the money comes from | Evidence under FMI's general guidelines |
|---|---|
| A loan | Copy of the loan documents or promissory note |
| An inheritance | Estate inventory, distribution agreement or similar |
| Savings | Employer's certificate, payslips, bank statements or similar |
| A gift | Deed of gift |
If the customer or beneficial owner is a PEP, more applies. You must establish the source of the assets and obtain approval from an authorised decision-maker (Chapter 3, Section 19). See PEP screening.
Which risk factors are typical in property transactions?
FMI's general guidelines to Section 6 of KAMFS 2021:3 list circumstances that may justify high risk. They include:
- difficulty identifying the customer or underlying interests
- purchases or sales that the customer's financial position cannot explain
- purchases in places where the customer has no personal or business connection
- a price out of reasonable proportion to the market value
- suspected straw arrangements
- sales where the customer has owned the property for an unusually short time.
In the guidelines to Section 22, FMI also lists signs of a straw arrangement:
- the buyer does not plan to live in the home
- payment comes from several accounts, or from someone other than the buyer
- the loan comes from an unusual source
- the buyer seems unaware of the property's purpose or use.
Cash and deposits
In FMI's general guidelines, payment in cash or by means that ease anonymity is both a high-risk factor and a straw-buyer sign. So is a deposit paid directly to the seller.
The national risk assessment describes misuse of agents' client money accounts, such as a deposit repaid to a different account from the one it came from.
Foreign connections
If the customer is established in a high-risk third country, enhanced measures are mandatory (Chapter 3, Section 17). For remote identity verification, follow Section 17 of KAMFS 2021:3. The risk assessment notes that client money accounts have been used when banks would not accept purchase money from abroad directly.
How must CDD be documented?
You must document the risk assessment of each customer relationship and the grounds for it (Section 7, KAMFS 2021:3). For identity verification, the record must show the date of each measure, and you keep copies of the identity documents (Section 16, KAMFS 2021:3).
FMI highlights three points: keep copies of the documents you relied on, record when the measure was taken rather than when the note was written, and justify why a customer was assessed as, for example, low risk.
You keep the records for five years (Chapter 5, Section 3 of the Swedish AML Act and Section 27, KAMFS 2021:3).
According to the national risk assessment, FMI has stressed that contract-drafting assignments carry the same responsibility for risk classification and CDD as a normal brokerage assignment.
What has FMI's supervision found?
The 2023 review. FMI examined estate agency firms' AML work. It concluded there were major knowledge gaps about the purpose and practical application of the rules. The documentation was rarely the practical support it was meant to be. FMI also noted low reporting to the Financial Intelligence Unit.
The 2025–2026 thematic review. FMI handled 25 supervisory cases on firms' general risk assessments and procedures and found shortcomings in all of them. Seven cases were closed. In the others, FMI's disciplinary board issued a warning with an administrative fine. FMI is preparing a guidance memorandum it expects all firms to take into account.
The national risk assessment. There, FMI writes that supervision repeatedly finds shortcomings in agents' CDD and its documentation. FMI's decisions are available through the Sök beslut service on fmi.se.
Checklist for every brokerage assignment
- Seller's identity verified before the assignment agreement, with date and copy
- Representative's identity and power of attorney checked
- Beneficial owner established, including for private individuals (straw buyers)
- PEP assessment done for seller and buyer
- Purpose of the sale and the purchase documented
- Buyer's identity verified before contract signing
- Financing and source of funds established, with evidence where risk is high
- Risk profile set and justified for each customer
- Anomalies during the assignment followed up and assessed
- Report to the Swedish Police Authority where there are reasonable grounds for suspicion (Chapter 4, Section 3)
What changes in 2027?
From 10 July 2027, AMLR applies directly: both parties become customers and Article 23(1) sets the timing. FMI notes the new framework may bring new CDD requirements. See AMLR 2027 and customer due diligence.
How AKT supports the work
AKT runs the KYC process and brings documents, screening, risk assessment and the decision together in one customer file with a full audit trail. Onboarding, periodic and event-driven review happen in the same file, and a person makes the decision. Read more about AKT for real estate agents.