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FINANCE

Sweden banking crisis law closer to completion

A new Swedish law regulating how and when the state would act to take over a bank in crisis is closer to be coming a reality.

Minister for Financial Markets Mats Odell estimates the Riksdag will make a decision on the law sometime next year.

“There’s no connection to the current troubles with American and British banks,” said Odell.

The law has been under discussion for several years.

“We’ve come pretty far but talks continue on a number of issues. It’s an extensive law. There is much that needs to be taken into account,” he said.

The proposal has its roots in the Swedish banking crisis of the early 1990s when current Riksbank head Stefan Ingves was forced to negotiate bailouts in the absence of any formal legal framework.

At the time a decision was taken that a set of rules should be developed and a committee on banking law put forward a proposal to the former Social Democratic-controlled government in 2000.

”Its been lying around gathering dust over a few social democratic governments. Now we’re starting to see the end of the process,” said Odell.

The new law, refered to as ”the public administration of banks in crisis” will, among other things, regulate under which circumstances the state can take over a bank.

The law proposes to establish a decision making body with the authority to decide whether to impose public administration of banks at times when the owners aren’t able to keep problems at bay.

Certain criteria must be met in order to go forward with any such action.

“What we want to achieve are measures that impose the smallest possible economic cost in thwarting extremely serious disturbances to the financial system which can in turn cause even greater costs to the national economy,” said Odell.

He compared the new law to fire insurance.

“It’s important to have things clarified before you detect something is burning,” he said.

“But Swedish banks are amongst those least affected by what is happening at the moment. I believe that is because banks learned a tough lesson in the 1990s.”

Later in the year the proposal will be sent out for a 90-day consideration period and next year Odell believes the proposal will be put before the Riksdag.

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MONEY

How to avoid falling victim to tax scams in Sweden

Sweden's tax agency, Skatteverket, warns of an increase in scams when it's time for Swedish tax-payers to declare their taxes.

How to avoid falling victim to tax scams in Sweden

Anyone who earned more than 22,208 kronor last year received their tax returns digitally last week, marking the start of tax season.

That also means an expected peak in tax-related scams, Skatteverket warns.

Most of the scams are so-called phishing scams, meaning attempts to steal the victims’ personal information. Fraudsters may for example email a person, pretending to represent Skatteverket, and ask them for, among other things, their banking details.

“We’re seeing these in all channels. They use fake emails, SMS, letters and in some cases even phone calls. It is particularly common in tax declaration times – just when we’re about to send out the tax returns, the e-service opens and it’s possible to declare – but above all when it’s time for tax rebates,” Jan Janowski, a Skatteverket expert, told Swedish news agency TT.

A scam email might for example state that you’re entitled to a tax rebate and that you should click a link to receive it. Don’t click any links, open any attachments or reply to the message. Skatteverket advises that you immediately delete the email or text message.

Another common scam is that you receive a text message claiming to be from Skatteverket, telling you that you owe them money and you need to log in to calculate the amount. The website you’re urged to log in via does not belong to Skatteverket. Don’t click the link.

The agency stresses that it never asks people for their banking details. The exception is that you may be asked for your bank account information if you log into Skatteverket’s website to declare your taxes, but that always first requires you to log into the site.

To receive your tax rebate, you need to inform Skatteverket of your bank account number. You do this not by clicking a link in an email or SMS, but by logging into their website using a digital ID, for example BankID, and submitting your details. Only do this on your own initiative. If someone calls you and asks you to log in with your BankID during the phone call, don’t do it. That’s another common scam.

Skatteverket will also never call you to ask for your bank account or credit card number.

It will be possible to declare your taxes from March 19th. You’ll receive any tax rebate you’re owed by mid-April or early June, depending on when you submit your tax return. These are the dates when fraudsters are likely to attempt the most scams.

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