Facilitators Play Key Role in Sweden’s “Crime as a Service” Market
Growing Demand for Criminal Services
A growing market for criminal services has emerged in Sweden, with facilitators playing a crucial role in helping criminals hide their illicit proceeds. These individuals provide a range of services, from advice on formal requirements to access to Swedish or foreign companies, frontmen, and identities.
Who are the Facilitators?
According to experts, facilitators are often highly qualified players who operate with the support of a business entity. They may work deliberately as part of a criminal scheme or through a company being infiltrated by individuals linked to criminal operators.
The “Crime as a Service” Market
The “crime as a service” market has seen an increase in recent years, with criminals buying or renting services required for specific criminal schemes. This includes money laundering, which remains a significant vulnerability in Sweden’s anti-money laundering regime.
Vulnerabilities in the System
A government authority assessment identified several key vulnerabilities in the system, including:
- Inadequate identity verification
- Uneven reporting to the Financial Intelligence Unit
- Limited exchange of information at the strategic level
Identity Verification Issues
One of the main concerns is the lack of robust identity verification processes. Government agencies and other actors often rely on checks carried out by the issuing agency, assuming that they are correct. However, this assumption can be flawed, as documents issued or used on false premises can be utilized to facilitate money laundering and other criminal schemes.
Low Reporting Rates
Another issue is the low level of reporting suspicions of money laundering and terrorist financing by business operators in the non-financial sector. In 2018, only a small proportion of all actors with an obligation to report submitted reports to the Financial Intelligence Unit.
Addressing Vulnerabilities
The Swedish government has been working to address these vulnerabilities and strengthen its anti-money laundering regime. However, more needs to be done to prevent criminals from exploiting weaknesses in the system.
Unlicensed Operators Conducting Business
Meanwhile, criminal operators have moved cash handling away from banks and towards currency exchangers and money transferors. This has created an environment where unlicensed or unregistered operators can thrive, further exacerbating vulnerabilities in the system.
The Way Forward
As the “crime as a service” market continues to grow, it is essential that Sweden’s authorities take a proactive approach to combating money laundering and other forms of financial crime. This includes:
- Strengthening identity verification processes
- Improving reporting requirements
- Enhancing cooperation between government agencies and private sector operators