Facilitators Fuel Rise in “Crime as a Service” Market

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The Swedish financial sector has witnessed a significant surge in demand for criminal services, commonly referred to as “crime as a service.” This phenomenon has led to an increase in the number of facilitators who provide key competencies and positions to criminals.

What Facilitators Offer

Facilitators offer a range of services, including:

• Advice on registering and running companies
• Purchases and sales
• Financial transactions
• Inserting criminal proceeds into the legal economy
• Providing Swedish or foreign companies, frontmen, or identities
• Holding key positions and making decisions or approving transactions as part of money laundering schemes

The Role of Facilitators in Criminal Operations

Experts state that the most qualified players in this market often act with the support of a business, providing services that are either deliberate or involuntary. Facilitators may be forced to assist criminals due to threats or pressure.

Cash Handling Shifts to Unregulated Operators

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As banks have reduced their cash handling in Sweden, criminal operators have shifted their focus to other services such as currency exchangers and money transferors. These sectors have seen an influx of unlicensed or unregistered operators who handle large sums of cash without proper oversight.

Vulnerabilities in Anti-Money Laundering Regime

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Despite the Swedish anti-money laundering regime’s efforts, vulnerabilities persist. The Financial Action Task Force (FATF) has identified several areas of concern, including:

Inadequate Identity Verification

• Government agencies and other actors rely on primary identification checks carried out by issuing authorities, but these checks may not always be accurate.
• The Swedish Tax Agency has acknowledged that companies, individuals, and government agencies often have a flawed understanding of coordination numbers, which can facilitate money laundering and other criminal schemes.

Uneven Reporting to Financial Intelligence Unit

• The anti-money laundering regulations rely on business operators reporting suspicious activities to the Financial Intelligence Unit.
• However, the number of reports submitted by these operators is low, particularly in the non-financial sector. This limited reporting hinders the ability of authorities to detect and prevent money laundering and terrorist financing.

Conclusion

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As the demand for criminal services continues to rise, it is crucial that authorities address these vulnerabilities and strengthen their efforts to combat money laundering and related crimes.