Crime prevention
Police | Customs | National prosecution authority | Ministry of Justice
A record number of economic offences reported to the police again
Source: Police
In 2024, the police registered a total of 2,619 economic offences, which is about 10% more than in the previous year and an all-time record. The number of different types of crime also increased by 8% from the previous year, and 4,741 different types of crime were registered. The number of open criminal cases (4,452) increased by almost 13% from the previous year (2023: 3,946). The number of open cases of economic crime has been on the rise for several years and this is reflected in a growing workload of crime investigators and long processing times. Despite the challenging situation, the police were able to conclude more cases of economic crime in 2024 than ever before. As the financial situation of companies is weakening and the number of bankruptcies has grown, the risk of economic offences reported to the police will remain high in the near future.
Last year, the police used coercive measures to recover a considerable amount of assets (EUR 29.5 million) in connection with the investigations of economic crime (2023: 24.5). The figures describing the proceeds of economic crime and criminal damage arising from this type of crime clearly show that economic crime causes significant harm to society at large. Over the past ten years, the damage caused by economic crime each year has averaged EUR 190 million. In the cases of economic crime closed last year, the damage totalled about EUR 125 million. The damage caused by an offence is not always at the same level as the proceeds it generates – an environmental offence generating only small proceeds may cause significant environmental damage. The statistics on criminal damage and criminal proceeds cannot be compared with each other as the principles used to compile them are not compatible. The figures describing the amounts of criminal damage are based on cases of economic crime concluded during the calendar year, whereas the figures describing the recovery of criminal proceeds are based on the proceeds of economic crime, regardless of the year under review.
An increase in bankruptcies is reflected in offences reported to the police
The deteriorated financial situation and the increased number of bankruptcies are reflected in the number and characteristics of criminal matters reported to the police. In 2024, there was particularly an increase in the number of dishonesty offences committed by the debtor, fraud committed by the debtor and accounting offences from the previous year. Offences by debtors are regularly linked to accounting offences, and the increase in the number of accounting offences is partly explained by the increase in the number of offences committed by debtors. Economic misconduct by companies and persons connected with them typically manifests itself in debtor’s offences, tax and accounting offences, embezzlement, counterfeiting and different types of fraud. The share of offences involving debtors, tax offences and accounting offences of economic offences reported to the police increased, amounting to a total of 63 per cent of all economic offences reported to the police.
Economic offences typically involve several series of offences or extensive overall arrangements that are used to dodge statutory obligations and obtain undue financial benefits. The actions and prevention measures of the cooperating authorities as well as the extensive criminal offences exposed by the public authorities affect economic crime reported to the police and criminal statistics.
Customs secures tax revenue, combats the shadow economy, and uncovers and investigates economic offences
Source: Customs
In 2024, the taxes levied by Finnish Customs to the EU and the State of Finland amounted to about 0.26 billion euros. Statistics convey the tax levy by Customs, as well as the impact of administrative measures and crime prevention. Customs statistics should be compared with the observations and statistics of other authorities that participated in creating an overview of the situation. This approach makes it possible to observe the correct scale and emphasis of each topic and phenomenon.
Customs facilitates equal competition and combats malpractice efficiently
Customs controls the goods that it taxes. An individual customer is required to pay taxes for Customs to release their goods, unless they are a credit customer.
Economic crime prevention by Customs still has a strong hand in the combat against circumventions of EU sanctions against Russia and Belarus, and in the combat against international economic crime relating to digital trade and internal trade traffic. The Internet is used to an increasing extent in marketing and selling highly taxable products to consumers. At the same time, the tax regulations concerning these products are being circumvented.
The point of emphasis for customs controls is the type of activity that involves significant fiscal interests. Real-time customs enforcement that focuses on various types of traffic and the related flows of goods, vehicles and passengers is of key importance in ensuring correct taxation and, consequently, in combating tax deficit. The prevention of economic crime that falls under the investigative responsibility of customs crime prevention personnel also aims at decreasing the tax deficit.
From 2013 to 2024, the share of unpaid taxes has varied between 0.05 % and 2.10 % of taxes prescribed for payment, and of tax-like charges. In 2024, the share of back taxes in payable taxes and tax-like charges with regard to the total levy of about 0.26 billion euros that Customs collected was 0.76 million euros, or 0.32 %.
Customs monitors businesses through corporate audits and document controls
Customs Corporate Audit ensures the fiscal correctness of customs and fiscal transactions, facilitates and secures foreign trade as well as equal competition between businesses, and protects society for example by undermining the operational environment of the shadow economy.
In 2024, Corporate Audit focused on for example customs procedures, fairway dues, agricultural and internal market subsidies from the EU, and the Åland tax border. Moreover, Customs still carries out controls of tax warehouses relating to excise duties on behalf of the Tax Administration.
Audits are nationwide and Customs carries them out in real time, as well as before and after actual cases to be examined have occurred. In addition to corporate audits and document controls, Customs also performs for example warehouse controls, as well as controls of accounting and goods. Audits and controls are based on risk analysis or take place on a statutory basis. Risk-based target selection is supplemented by random sampling.
A corporate audit covers the operations, organisation, administration, internal control, business systems and accounting materials of an individual company. Most corporate audits involve visits to businesses. A corporate audit may be conducted before a licence, permit or status is granted, or before approval of a change in a licence or permit. The purpose of a subsequent corporate audit is to review a company’s operations and the correctness of its business transactions and customs declarations after customs clearance or taxation.
Document controls comprise controls of business transactions carried out after customs clearance or the taxation process. Usually, document controls are targeted at a large number of decisions on customs clearance or taxation. The number of document controls also includes controls involving authorisations and administrative mutual assistance.
In 2024, Customs conducted a total of 337 corporate audits and document controls (figure 2). Annual variation in the number of audits and controls is the result of the priorities approved for the audits and controls each year, the areas audited and controlled, and the increasing use of electronic audit and control materials. In 2024, customs procedure audits focused on import and special procedures.
The total amount of debited taxes based on post-clearance recovery resulting from tax audits was 8.9 million euros at the end of 2024. Annual variation in the amount of post-clearance recovery depends on the auditing and control priorities, risk analysis and critical selection criteria used in the selection of entities, the proportion of entities subject to statutory audits and controls, the size of the companies audited and controlled, and the scope of audits and controls. Even a single larger audited entity or a major error will have a significant impact on the annual post-clearance recovery total.
A total of 19 corporate audits and document controls were carried out in 2024 on shadow economy targets. These were based on either a criminal offence, the AM communications of OLAF, or requests for preliminary investigation.
Counterfeit products
Customs supervises goods infringing intellectual property rights pursuant to Council Regulation (EU) 608/2013. The purpose of the supervision is to protect customers from exposure to products that may endanger their health and safety, as well as safeguard tax revenue and the financial interests of rights-holders. The controls are largely based on cooperation between Finnish Customs and rights-holders, as the crimes involving counterfeit goods that infringe intellectual property rights are complainant offences. Most of the counterfeit products detained by Customs infringe a registered trademark or design. Products that infringe patents are also occasionally detected. Supervision takes place in connection with, for example, physical inspections.
The number of counterfeit goods detained by Customs and their calculated value have been decreasing between 2013 and 2024 (figure 3). The fluctuation in the number of detained counterfeit goods and their value is completely normal and strongly connected to the resources available at a given time. The long-term trend clearly indicates a decline in large-volume detentions. This is because there is currently no eastbound transit traffic, which means that Finland is no longer a transit country for counterfeit goods. Today, detentions are completely focused on postal and express freight traffic, and these now reflect the situation of counterfeit goods in Finland more than before.
The explosive growth in online trade has a significant impact on counterfeit imports. In 2024, Customs received about 8.5 million import declarations on online trade consignments of goods from outside the EU, that is, from so-called third countries. In terms of the number of consignments, 28 million online trade consignments arrived in Finland. The number increased significantly from the previous year. Most consignments were of low value, that is, under the value of 150 euros. Almost 98 % of consignments arrived from China. The nature of consignments has also changed. Previously, most consignments from third countries were addressed to businesses. In 2024, more than 90 % of third-country consignments were addressed to private individuals. This trend has posed new challenges to Customs, especially in product safety controls.
Controls of postal traffic are challenging due to large volumes. Identifying counterfeit goods requires a more detailed inspection of the goods, and usually, X-ray imaging is not helpful in this respect. The primary responsibility for the conformity of products lies with manufacturers, importers and sellers, as prescribed by law. In Internet trade, the private individual who orders goods from an online shop is considered the importer. If the product breaches regulations, the private individual in question should contact the seller or manufacturer of the product. As concerns online purchases of foreign origin, the seller or manufacturer is often located abroad.
Internet trade has undergone significant growth, a fact that also affects the EU economy. Consignments worth less than 150 euros are subject to value added tax, but not customs duty. For example, the highest amount of third-country customs duty payable for, for example, textile materials and textile goods is 12 %. Furthermore, customs duties also affect the amount of VAT payable for a consignment. The EU is indeed missing out on significant income that would result from goods ordered at online shops outside the EU. The customs exemption regarding online product consignments of low value will most likely be removed in the coming years.
More than 95 % of the articles detained in Finland infringe a registered trademark. With the volume of packages constantly increasing, the resources allocated to supervising postal traffic have not permitted Customs to focus on the identification of counterfeits among arriving goods.
Economic crime investigation
Customs investigates suspected economic offences that fall under its jurisdiction. An economic crime is an offence committed in connection with legal business activities in order to gain financial benefit. The main offence is usually a standard or aggravated tax fraud. Other offences investigated as economic crimes include cases of regulation offences, forgery, customs clearance violations, environmental offences and accounting offences. Customs also classifies the smuggling of products subject to excise tax (alcohol, snus and cigarettes) as economic crime when it is comparable with business and professional activity, and even when it is not disguised as business activity.
The societal impact of economic crime prevention by Customs in 2024 amounted to 83.6 million euros, while the figure for the previous year was 103.22 million euros (figure 4). The impact comprises the sum of damages resulting from the cases investigated, i.e. avoided taxes, damages resulting from cases under or pending investigation (sequestration and prohibition of transfer), assets recovered by Customs, and assets assigned to the distraint authority or another official. The value of recovered proceeds of economic crime totalled 1 million euros. In the previous year, the amount was 8.2 million euros. The amount of recovered proceeds of crime varies from year to year.
In 2024, Customs investigated 404 tax frauds, which was 229 cases less than in 2016. A total of 71 cases of aggravated tax fraud were detected, which is 36 cases less than the previous year. A significant share of tax frauds that Customs investigated involved the smuggling of tobacco products. Cases of snus and cigarette smuggling and the related seizures increased in 2024. Especially in cases of smuggling involving illicitly manufactured cigarettes, the tax interest is often significant. There have been fewer tax frauds due to closure of Finland’s eastern border, and due to the decision by the Supreme Court of Finland (KKO:2024:39) in June 2024 after which cases of snus smuggling have no longer been investigated as tax frauds.
Customs combats fraud crime regarding value added tax in Union trade together with the Tax Administration and foreign law enforcement authorities. In economic crime investigations relating to joint EU funds, Customs cooperates with the European Public Prosecutor's Office (EPPO). EPPO investigations are on the rise, and currently Customs is conducting around ten such investigations. The preliminary investigations have involved for example additional duties and anti-dumping duties, as well as VAT fraud investigations.
Ever since the Russian invasion of Ukraine, the sanctions against Russia and their suspected circumventions have been a significant phenomenon. The closure of the border crossing points on the land border between Finland and Russia on 30 November 2023 halted the heavy goods traffic and passenger traffic on the border. As a result, the number of petty regulation offences dropped significantly Last year, preliminary investigations concerned mainly circumventions of sanctions through businesses and business activity. Complex international business networks, as well as intermediary companies and front companies are used in transporting goods to Russia. Transport channels are being changed, and seller companies are led astray with cover stories and fake documents. Operational models will be changed as new sanctions regulations enter into force.
In 2024, around 1 500 goods transports between Finland and Russia were processed under sanctions enforcement based on customs declarations, of which more about 930 were inspected. The number of regulation offences has increased considerable since 2022.In 2024, Customs registered 99 regulation offences that involved activity in breach of sanctions. Of these cases, Customs investigated 35 as suspected aggravated regulation offences. Before the war, only some arbitrary regulation offences were under investigation. Through effective export control, Customs will ensure, for its part, that the EU’s common foreign and security policy measures are effective, and that the objectives set out for them are achieved in full.
The prosecutor's duty is to enforce criminal liability.
In the case of shadow economy phenomena, this means that the prosecutor decides whether there are grounds for deeming that the preconditions of a criminal offence have been met. As a rule, the prosecutor must press charges when there are probable grounds for doing so on the basis of the evidence gathered in the pre-trial investigation. A criminal case is initiated in a District Court on the basis of an application for a summons and progresses to the main hearing after the related preparations.
District courts decide cases of financial crime as the court of first instance
Source: Ministry of Justice
The number of cases of financial crime decided by district courts has remained level in recent years. The most common financial offence decided by district courts is aggravated accounting offence. Aggravated accounting offences are often connected to other offences, such as aggravated tax fraud. The handling time of a financial offence is influenced by factors such as the scope of the case. The median handling times of cases in district courts range from approximately 150 to 300 days, depending on the type of offence.
In 2024, the median time taken to resolve financial crime cases increased by 11 days, an increase of around 4%. The average processing time, on the other hand, increased by around 35 days or about 10%. On average, the processing times for financial crime cases have increased more than for other criminal cases and property offences. In 2024, the average time taken to deal with all criminal cases increased by about 2%.
More information about the processing of criminal cases in general: Financial statements of the National Courts Administration (in Finnish only, summary in Swedish) [.fi]›.