Financial Crime World

Government Seeks to Crack Down on Abuse of State Support Schemes

In an effort to increase detection and prosecution for abuse of state support schemes, the Norwegian government is proposing revisions to the rules regarding disqualification periods following bankruptcy.

Improved Handling of Bankruptcy Crime

The proposal aims to ensure a more effective handling of bankruptcy crime in light of the rapidly changing conditions in the securities market. The government has also announced plans to assess the cooperation between ØKOKRIM (the National Authority for Investigation and Prosecution of Economic and Environmental Crime), Kredittilsynet (the Financial Supervisory Authority of Norway) and the Oslo Stock Exchange.

Assessment of Agency Cooperation

The assessment will focus on control resources and the division of labor between the agencies, with the goal of improving detection and prosecution of economic crimes.

Implementing EU Finance Market Legislation

As a member of the EEA Agreement, the government is actively participating in the drafting of EU finance market legislation. Important measures for implementing EEA rules in this area are currently being implemented in Norwegian law, including:

  • Accounting: The Ministry of Finance will submit a bill on implementing the EU Regulation on the application of international accounting standards (IFRS) in summer 2004.
  • Auditing: The Ministry of Finance will consider amendments to the Auditors Act and submit a bill when a new Eighth Company Law Directive on Statutory Audits is finalized.
  • Market Abuse: The Ministry of Finance will submit a bill on implementing the new directive on insider dealing and market manipulation (market abuse) and its supplementary acts in autumn 2004.
  • Prospectus Directive: A working group appointed by Kredittilsynet has proposed rules for implementing the new directive on the prospectus to be published when securities are offered to the public or admitted to trading, and the Ministry of Finance will circulate a bill for consideration.

Ensuring Effective Enforcement

The government is also issuing regulations to ensure effective enforcement of the new Competition Act, including regulations enabling leniency to facilitate detection of cartels and stringent administrative sanctions.

The Importance of Combating Economic Crime

Economic crime, which includes abuse of state support schemes, has serious detrimental effects on society. It can lead to increased costs for public authorities, undermine trust in the market, and distort competition. The government is committed to combating economic crime and ensuring a level playing field for law-abiding businesses.

What is Economic Crime?

Economic crime is an umbrella term for various crimes associated with industry and commerce, including:

  • Tax evasion
  • Breaches of competition legislation
  • Corruption
  • Bankruptcy crime
  • Breach of trust
  • Fraud
  • Embezzlement
  • Breaches of accounting rules
  • Illegal copying of software
  • Abuse of state support schemes
  • Fishery crime
  • Insider dealing
  • Currency manipulation

The Scale of Economic Crime

While the level of reported economic crime has remained fairly constant in recent years, it is estimated to have a significant impact on society. Tax evasion alone may cost the country billions each year, weakening the basis of the welfare state and resulting in law-abiding taxpayers paying a disproportionate share of communal costs.

The government’s efforts to combat economic crime aim to protect the public interest, promote trust in the market, and ensure a level playing field for law-abiding businesses.