Criminal Services Market Booms as Crime Goes Digital
The criminal underworld has taken a significant step into the digital age, with a growing market for “crime as a service” emerging. This black market allows criminals to purchase or rent the tools and expertise needed to carry out their illicit schemes.
A Thriving Black Market
Experts have identified a range of services being offered by facilitators in this illegal industry. These services include:
- Advice on formal requirements for registering and running companies
- Purchasing and sales assistance
- Financial transaction management
- Inserting illegal proceeds into the legal economy
- Providing criminal operators with Swedish or foreign companies, frontmen, or identities
Facilitators have been linked to various types of crime, including money laundering, and often operate through legitimate businesses. The most skilled players use their expertise to further criminal activities.
Vulnerabilities in Sweden’s Anti-Money Laundering Regime
Sweden’s government has identified several vulnerabilities in its anti-money laundering regime that can be exploited by criminals. These weaknesses include:
- Inadequate identity verification
- Uneven reporting to the Financial Intelligence Unit
- Limited resources within the unit itself
A recent report by the Swedish Tax Agency highlighted these issues, noting that companies and individuals often rely on incomplete or inaccurate identification checks. The agency also criticized the Swedish Companies Registration Office for not verifying the quality of information in its registers.
Failing Reporting Obligations
A review of reporting obligations has revealed that many business operators are failing to submit suspicious transactions to the Financial Intelligence Unit. In 2018, only 356 out of thousands of actors with reporting obligations submitted reports, highlighting a significant gap in the system.
Strengthening Anti-Money Laundering Measures
Experts warn that these vulnerabilities can be exploited by criminals to launder money and fund illegal activities. The Swedish government has vowed to address these weaknesses and strengthen its anti-money laundering regime to combat the growing threat of organized crime.
Key Takeaways
- The market for criminal services is growing, allowing criminals to purchase or rent the tools and expertise needed to carry out their schemes.
- Facilitators offer a range of services to assist in illegal activities.
- Inadequate identity verification and uneven reporting are key vulnerabilities in Sweden’s anti-money laundering regime.
- The Swedish government has pledged to strengthen its anti-money laundering regime to combat organized crime.