This is how we work against fraud linked to exports

As international purchasing power grows, and more used cars are exported from Sweden, the risk of the cars being used for money laundering increases. But as a player in the used car market, we can do our part to reduce the risk – here we present the procedures we use at Kvdbil .

Currently, almost every fourth car sold on kvd.se is sold abroad. A weak krona means that more and more international buyers are turning to the Swedish used car market, something that we see is creating even greater demand for used cars and has thus also contributed to an increased price picture.

But, along with this also come challenges. Cars are capital goods and the risks of money laundering increase when the cars are taken beyond Sweden's borders.

Kvdbil does this to prevent used cars from being used for money laundering.

"I feel confident that we are doing what we can to combat fraud. We follow the Swedish Tax Agency's recommendations to the letter and have an export department that keeps extra track of transactions," says Kvdbil 's sales manager Daniel Odsberg.

And in the very department that Daniel is referring to, that's where Jessica works. She helps daily with administration and transport solutions for customers who want to export a car outside Sweden's borders. We had a chat with her to hear how we work and what routines we have in place to reduce the risk of fraud.

Jessica Hvenfelt guides us through the steps and routines we have at Kvdbil :

1. We do not accept cash

It is not possible to pay in cash for a car you buy at kvd.se.

2. We check our customers and the transactions made from abroad

We have clear procedures for checking sellers and the cars being sold. Our export department handles all administration related to exports and checks that the car ends up with the buyer. But also that it is the buyer who actually pays for the car.

How we check the seller/car handed in: We check the seller and the car handed in, among other things, by submitting the registration certificate with the car. We also perform an identity check so we know that it is the seller who is handing in the car, otherwise a signed power of attorney is required.

We have requirements for the car - for example, if there is no complete history, if we find unclear remarks during the test, or if the car has had an abnormally large number of owners in the past year, we will refuse the customer to sell through us.

How we check the purchasing customer: In order for the customer to be able to buy the car VAT-free, there must be a valid VAT number and a registered company, together with a payment document for the car (if the customer buys the car for export within the EU) . However, private individuals can buy a car VAT-free, if they are located outside the EU. The customer always pays us a deposit corresponding to the VAT, which is only refunded when the buyer has submitted written documentation showing that the car has left Sweden and reached the buyer.

When refunding the deposit, we require proof of payment showing who paid and from which account number. We will only refund the deposit to the same account.

In the rare cases where we receive payment from a country other than the country the car is to be exported to or where it is not the buyer who has paid, we request documentation showing how it is that someone else is paying for a purchased car. For example, documentation on a loan from another party. At the slightest suspicion of irregularities, the customer or bidder is blocked from future purchases. This is not common, it is estimated that it concerns 1-2 customers per year.

3. We block customers where there is the slightest suspicion of irregularities

We take the safe route before the uncertain. In addition, from 2024, we at Kvdbil will be subject to a directive called DAC 7 on the exchange of information between EU countries regarding digital platforms. According to the directive, we are a platform operator and will need to report information about our sellers and their remuneration to the Swedish Tax Agency. The directive is being added to enable tax authorities in individual countries within the EU to identify situations where tax is due and also to combat money laundering.

Read more: How to export through Kvdbil