Around 2,000 companies in Finland have links to organized crime, according to a new report. Each year, these links are estimated to cost society around €40 billion in lost tax revenue.
The report is based on a 2022 study by the Unit for Investigations into the Grey Economy (HTSY), which shows that organized crime has become increasingly common among Finnish companies.
– Organized crime has a strong position in the Finnish business community. Companies with links to organized crime are also involved in the shadow economy and are not fulfilling their obligations to the authorities. This is why we need to take a serious approach to the phenomenon and its prevention, says Janne Marttinen, Director of the Grey Economy Investigation Unit, in a press release.
Used for money laundering
Almost 1,900 companies in Finland have links to organized crime, and 95% of them are Finnish citizens. Criminal groups use companies to carry out fraud, money laundering or other financial crimes.
According to the report, organized crime occurs in almost all industries, but is particularly common in smaller businesses, such as construction and real estate. Companies with links to crime are often less compliant with their tax obligations than other companies.
In its report, HTSY estimates that Finland loses around €40 million in tax revenue annually due to business activities linked to organized crime. In Sweden, by comparison, organized crime causes an estimated €9 billion in damage to business each year, according to the unit.