Sweden Intensifies Fight Against Economic Crime with New Legislation and Vigilant Tax Agency Actions

Sweden is confronting advanced economic crime that earns criminals illegal profits estimated at 185 billion kronor annually, according to a report from the Expert Group for Public Economics. These crimes often hide behind seemingly legitimate businesses, which serve as fronts for money laundering and welfare fraud, thereby threatening legitimate companies and public welfare.

The Swedish Tax Agency (Skatteverket) stands at the forefront of combating this challenge. In 2024, Skatteverket successfully shut down around 800 fraudulent companies in a single large operation, underscoring the widespread nature of economic crime in the country. However, Patrik Lillqvist, intelligence chief at Skatteverket, warns that the true scope of criminal use of companies is still unclear, presenting an ongoing and serious challenge.

To detect such economic crimes, Skatteverket employs detailed investigative methods. These include identifying proxies who have no genuine business connection, monitoring discrepancies in accounting records compared to the lifestyles of company owners, and analyzing the construction of large companies from smaller entities that may be used to obscure illegal activities.

Recent legislative improvements, notably the law on independent forfeiture, have empowered Swedish authorities by allowing the confiscation of luxury assets from individuals whose income sources are unexplainable. Additionally, reduced agency confidentiality has enhanced cooperation and effectiveness in fighting economic crime.

Patrik Lillqvist emphasizes that the goal of these measures is to protect honest entrepreneurs, safeguard tax revenues, and ensure public funds support essential services such as education and healthcare rather than fueling criminal lifestyles. The combined efforts of intensive investigations and stronger legal tools present a significant opportunity to push back against the criminal economy in Sweden.