New Swedish legislation proposed to strengthen anti-corruption enforcement

A recent inquiry has proposed new Swedish legislation to enhance the fight against corruption and related crimes. This blog post highlights the key developments, next steps, and how companies can prepare to ensure compliance.

Background

As previously reported on our EU and Competition Blog (see here), the Swedish Government introduced the Action Plan Against Corruption and Unlawful Influence for 2024-2027 (Sw. “Handlingsplan mot korruption och otillåten påverkan 2024–2027”) in 2024. Under this action plan, an inquiry was launched to review criminal legislation on corruption and misconduct (the ”Inquiry”). The Inquiry has now published its findings in the recently released Report on Criminal Law Measures Against Corruption and Misconduct (Sw. “Betänkande av Utredningen om straffrättsliga åtgärder mot korruption och tjänstefel”, SOU 2025:87, available in Swedish here) (the ”Report”).

The need for the Inquiry was originally prompted by criticism of Sweden’s last major anti-corruption legislative reform in 2012, which led to a reassessment of its effectiveness. Meanwhile, both society and criminal activity continue to evolve, cross-border corruption incidents have increased steadily, and corruption has become increasingly linked to organised crime.

Societal and economic consequences of corruption

Whilst the Report emphasises that corruption ultimately threatens democratic and well-functioning society, it also highlights the damage it inflicts on the private sector by undermining fair competition, threatening free trade, and hindering economic growth. Furthermore, the Report specifically identifies public procurement as a high-risk area for corruption, given that Swedish public administration procures goods and services worth SEK 900 billion (approximately EUR 81 billion) annually. Corruption in public procurement not only damages public trust but also inflates contract costs for taxpayers and forces legitimate businesses to compete against unscrupulous entities, including those linked to organised crime.

Legislative measures proposed by the Inquiry

In light of developments since 2012 and the ongoing societal risks posed by corruption, the Inquiry notes that criminal law plays a pivotal role in combating corruption and misconduct by public officials – although it is only one of several tools. Therefore, the Inquiry proposes, inter alia, the following legislative measures:

• Consolidating corruption offences (which currently are part of the Swedish Criminal Code) into a new act called the Act on the Punishment of Certain Corruption Offences (Sw. “lag om straff för vissa korruptionsbrott”).
• Clarifying criminal liability for bribery offences and increasing the corresponding penalty scale (e.g. a normal-degree offence – previously punishable by a fine or imprisonment of up to two years – would result in imprisonment of up to three years).
• Extending and clarifying the penal provision on trading in influence (for which there are still no convicting judgements), increasing the penalty scale (e.g. a normal-degree offence – previously punishable by a fine or imprisonment of up to two years – would result in imprisonment of up to three years), and introducing a serious offence category.
• Introducing new criminal liability for negligent financing of corruption offences (cf the current prohibition against reckless financing of a bribe).
• Expanding liability for abuse of public duty with a new offence: abuse of public office (Sw. “missbruk av offentlig ställning”).
• Expanding the power of Swedish courts to try certain corruption offences committed abroad by
  (i) extending their jurisdiction to cover such offences committed in the course of a Swedish company’s business activities, and
  (ii) abolishing the dual criminality requirement for those offences.

However, it is noted that it is not possible within the framework of the Investigation to fully address all the problems raised by the OECD regarding the liability of legal persons under Swedish legislation, such as the fact that Sweden lacks criminal liability for legal persons and that the sanctions for legal persons are insufficient. It is also not possible to achieve a regulatory framework that entails a general requirement for preventive anti-corruption work or general risk assessments for companies. Whilst few Swedish companies or their employees have faced sanctions domestically, several have incurred significant penalties in the United States for corruption-related offences.

Next steps

The Report is currently subject to consultation by various bodies until 7 November 2025. Following this consultation phase, the Government will draft a Government Bill for subsequent consideration by the Swedish Parliament. The Inquiry proposes that the new legislation enters into effect on 1 January 2027.

Parallel EU legislative process – a new EU Anti-corruption Directive underway

It is worth noting that the EU is developing a new Anti-corruption Directive. Whilst the Swedish Government initially intended for the Inquiry to assess Sweden’s conformity with EU law, negotiations on the directive have been delayed. Consequently, the Inquiry’s scope was narrowed to exclude a conformity review. Therefore, once the directive is finalised, it will likely have implications for the ongoing Swedish anti-corruption legislative reform.

The importance of robust corporate policies and guidelines and trainings are key

As anti-corruption measures tighten at both national and EU levels, it becomes increasingly important for companies to have comprehensive policies and guidelines in place. More importantly, tone from the top and staff training are key. Beyond mitigating potential criminal liability and high corporate fines, a strong ethical approach to business also serves as a competitive advantage by enhancing a company’s reputation and fostering customer, partner and employee trust.

At Delphi, we are available to provide expert guidance on preventing corruption and ensuring compliance with current and forthcoming legislation and trade industry regulations.