The Employment Fund takes an anticipatory approach to combating the shadow economy

Failure to pay a statutory payment always causes harm to the societal purpose for which the payment is collected – this is referred to as the shadow economy. In the case of the Employment Fund, unpaid unemployment insurance contributions take away from the unemployment benefits paid to the unemployed.

Foreign labour and the shadow economy

Use of foreign labour poses numerous risks of abuses. The employer might violate the minimum terms and conditions of employment contracts by underpaying wages. The employer may be motivated to use cheaper foreign labour to avoid taxes and other statutory payments, in order to obtain financial benefits.

Tax evasion in investment activities is changing

International investment activities involve several tax evasion and income hiding phenomena. According to a recent report, more effective legislation is also needed in order to combat them. Concealment of income and assets from the tax authorities has become more difficult during the past few years. Consequently, individuals who were earlier utilising bank secrecy for tax evasion purposes have been trying to find new ways to evade taxes.

The big picture of the grey economy and economic crime

The website on the grey economy and economic crime www.grey-economy-crime.fi provides summarised information on the grey economy and economic crime in Finland. The website is maintained through the cooperation of the authorities engaged in combating the grey economy. Further information on the authorities is available under the section About this website.

The website will support the decision-making of authorities and political decision-makers. The information it provides will enhance society’s capabilities to react rapidly to the phenomena and harm associated with the grey economy and economic crime. In addition, the website will provide companies and citizens with information on how to act or protect themselves against such harm.

The big picture is a combination of various aspects

The website provides an overview of the topical phenomena of the grey economy and economic crime comprising the observations of a number of different authorities. In addition, the website offers both domestic and international estimates on the scope and amount of the grey economy and economic crime. The website also provides information on the impact of action taken to prevent the grey economy and economic crime based on the statistics of authorities, including company audits and their results. The website also follows the progress of various projects included in the operational programme concerning the grey economy and economic crime.

In addition, the website contains a selection of recent domestic and international news flows on the grey economy and economic crime.

News about the shadow economy and economic crimes

Estonia: Crime investigation of Danske Bank to be expanded

1/17/2020
The Estonian Prosecutor's Office has announced that it will expand its crime investigation of the Estonian branch of Danske Bank. The investigation initially focused on two specific cases featuring...

Denmark: FSA improves anti-money laundering efforts

1/17/2020
The Danish Financial Supervisory Authority (FSA) still lags behind the best FSAs in Europe when it comes the fight against money laundering. Jesper Berg, head of FSA, says the authority is working on...

Finland: Number of means of payment frauds up nearly 2% in 2019

1/17/2020
According to Statistics Finland's preliminary data, a total of 447,400 offences against the Criminal Code were recorded by the police, customs and border guard in Finland in 2019, up 1%...