- Next Article Fewer than 50% of Finns expected to marry before age of 50
Nearly 2,000 businesses in Finland have connections to organised crime, according to a new report by the Grey Economy Information Unit (HTSY). The study reveals that managers of these companies are current or former members of criminal groups, presenting serious risks to the economy and society. This is the first comprehensive analysis of the intersection between organised crime and legitimate business in Finland.
The report identifies almost 1,900 individuals in business leadership roles who have ties to organised crime. Of these, 95% are Finnish citizens. The findings, developed in cooperation with the National Bureau of Investigation, highlight how criminal networks exploit businesses for money laundering, fraud, and other financial crimes.
Organised crime in critical sectors
Some 130 businesses linked to organised crime operate in sectors deemed critical for society, such as security and cleaning services. These businesses pose a significant threat, as organised crime groups can inflict more damage to society compared to individual financial criminals. Janne Marttinen, Director of the Grey Economy Information Unit, emphasised the gravity of the situation: “Organised crime has a strong foothold in the Finnish economy. These companies evade obligations and contribute to the grey economy, which is why addressing this issue is crucial.”
Significant tax losses and grey economy practices
Organised crime’s involvement in business leads to substantial tax losses. The report estimates that Finland loses €40 million annually in tax revenue due to these companies. This figure only accounts for limited liability companies and likely underrepresents the full extent of the problem.
A typical business linked to organised crime is a small construction, real estate, or car dealership company based in Uusimaa. These enterprises often have poor tax compliance, with a third of them carrying tax debts. Tax audits uncovered €11 million in unpaid taxes, revealing practices such as undeclared wages and hidden dividends. These activities give criminal-linked businesses an unfair advantage over legitimate competitors by reducing costs through illegal means, such as using undeclared labour.
A smaller issue compared to Sweden
While organised crime’s impact on Finnish business is significant, it is less severe compared to Sweden, where such activity costs the economy an estimated €9 billion annually.
The Finnish government, led by Prime Minister Petteri Orpo, plans to update its strategy against organised crime by the end of 2024. This will include a comprehensive action plan to tackle organised crime and combat the grey economy and financial crime.
The report underscores the urgent need for action to protect Finland’s economy and ensure fair competition. Measures to improve oversight, strengthen enforcement, and support honest businesses are essential to reducing the influence of organised crime in the business sector.
HT
- Next Article Fewer than 50% of Finns expected to marry before age of 50
Source: www.helsinkitimes.fi
