Organized economic crime is growing rapidly in Sweden. According to the Swedish Economic Crime Authority’s new Director General Rikard Jermsten, the criminal economy amounts to more than SEK 150 billion (€13,5 billion) – every year, and is today considered a systemic threat.
– It’s worse than I thought. We as a society are financing the crime that we are supposed to fight, he says.
In its latest situation report, the Swedish Economic Crime Authority describes a development where crimes are becoming increasingly complex and extensive – and where profits are increasing sharply. Money laundering through advanced corporate arrangements is identified as a central part of the gang criminal economy.
– In the past, the criminal profits in our investigations could amount to tens of millions of SEK. Today, we see profits well over 100 million in individual cases, explains Jermsten.
Particularly at risk are welfare systems, where criminal networks plunder public resources through fake companies, scam invoices and identity theft. But banks, pension systems and large construction and infrastructure projects have also become targets for organized crime.
“Threatening the basic functions of society”
The often quoted figure that the criminal economy in Sweden has a turnover of SEK 150 billion (€13,5 billion) – is probably underestimated, according to Jermsten.
“Economic crime is growing in scope and threatens the basic functions of society. It undermines trust in the state, weakens public finances and damages welfare systems“, the agency states in its report.
Jermsten describes the consequences as twofold: on the one hand, society loses tax revenue that would have gone to health, education and social care – and on the other hand, the money is used instead to finance other crime. If crime becomes too widespread, he also believes that honest citizens will be less willing to pay taxes.
– When criminals steal tax money from the state, we all lose out. At the same time, competition in the business world is distorted, with serious long-term consequences.
No quick fixes
There are no quick fixes, according to the agency. But to strengthen resilience, it wants to see several measures: making it harder to start or take over companies for criminal purposes, easier to control company representatives, and harder to exploit other people’s identities.
Public procurement must also be tightened up to keep organised crime out, and the supervisory authorities’ control functions need to be strengthened. The Economic Crime Authority also proposes tougher penalties for economic crime in general.
– The development is going in the wrong direction. The whole of society now needs to build up its resilience, says Rikard Jermsten.
