Action Plan against the Shadow Economy and Economic Crime for 2016–2020
1.1 Increasing the availability of and public access to free information on the fulfilment of obligations and on actors potentially engaged in the shadow economy
- Clarifications have been made on information to be published, on law and on the implementation solutions in the Business Information System (Ytj in Finnish).
- The report is on its way to completion. The launching of a follow-up project under which a more detailed project plan on the implementation of the project will be drawn up.
1.2 National Income Register
- The Income Register will be introduced in steps. In the first phase, as of 1 January 2019, information on wages and salaries will be reported to the Income Register.
1.3 Regulatory burden arising from action against the shadow economy and economic crime, and its monitoring
- Investigation of the impact of the regulatory burden and its reduction has been carried out.
- In the calculation of the regulatory burden, a calculator developed for the one-for-one principle is used. The first sector to which attention was given was the construction sector; a combating programme of grey economy has already been directed to it.
“Harmaan talouden torjunnan aiheuttama sääntelytaakka” (“Regulatory burden caused by the combat against the grey economy”), a clarification published the Finnish Competition and Consumer Authority in early 2018.
1.4 Enhancing the prevention, identification and detection of corruption
- Started on 15 February 2018.
1.5 Cross-sectoral study on measures to tackle the shadow economy in the sharing economy
- The first national market research on the sharing economy was completed in February 2017.
- A clarification entitled “Sharing economy regulatory environment - Challenges and developmental needs”, compiled as official work, was published on 8 December 2017.
- This work will be furthered deepened during 2018.
2.1 Situation awareness function to combat the shadow economy and economic crime
- Working in collaboration, authorities have created a website entitled “Grey economy and economic crime”, accessible to the public.
- Authorities have a joint group of editors that follows the situation in the grey economy and economic crime, publishing topical content on their website.
2.2 Tackling undeclared work and promoting national and international cooperation
- The national collaborative network supports the EU forum for tackling undeclared work. By way of “success stories”, Finland has presented the tax number register and a programme for combatting grey economy to the forum.
2.3 Action plan to step up the fight against money laundering
- The actual action plan will be prepared towards the end of the validity period of the strategy, in 2019–2020, after the risk assessment on money laundering and the funding of terrorism has been updated (the first statutory risk assessment based on an act that entered into force 3 July 2017.)
2.4 Study on the applicability of type-approved point-of-sale systems in Finland
- A work group at the Tax Administration has prepared clarifications related to the topic: 1.) legislation and the scope of its application 2.) international practices 3.) supervision 4.) technological options for implementation, and 5.) a summary The clarifications was completed in June 2018. (in Finnish)
2.5 Action plan to step up the fight against financial market abuse
- The government’s proposal is pending (the Act on Financial Supervision)
2.6 Promoting the preparation of plans under the EU Waste Shipment Regulation (EC/1013/2006) to control international shipments of waste
- This project has been completed.
- Kansainvälisten jätesiirtojen tarkastussuunnitelma (“Inspection plan for transboundary waste transport”)
3.1 Further development of the powers of public authorities and of provisions on the exchange of information
- Several amendments to legislation have been implemented (the Act on Public Procurement and Concession Contracts, the Occupational Safety and Health Act, the Pay Security Act, the Act on Transport Services, the Act on Preventing Money Laundering and Terrorist Financing, and reports on corruption to the Tax Administration)
- Several amendments to legislation are pending, including the Act on Financial Supervision and the Competition Act.
3.2 Study on problems caused by companies declared insolvent during the enforcement procedure
- The National Administrative Office for Enforcement (VVV) has launched this project.
- The procedure for the registration for VAT with the Tax Administration has been made more detailed.
4.1 Extending the scope of application of administrative sanction
- On 21 March 2017, the Ministry of Justice set up a work group to prepare general legislation on punitive administrative consequences. The final date for the work group’s proposal will be 31 August 2018.
4.2 The criminal investigation authorities, the Office of the Prosecutor General, the Finnish Tax Administration and the Bankruptcy Ombudsman will create an operating model which when applied in practice may ensure the imposition of criminal liability by determining the scope of pre-trial investigation and by applying effective administrative sanctions
- This project has been completed.
- In autumn 2017, the work group drew up two models for the intensification of collaboration between authorities and for speeding up the investigation of criminal cases involving bankruptcy and tax fraud.
4.3 Study on the effectiveness of detection and investigation of tax abuses
- The preparation of the clarifications is underway and they concern 1) criminal vs. administrative consequences, 2) issues related to inspections and 3) the issues related to the reporting obligation of third parties.
4.4 Review of the scale of punishments for economic offences
- A clarification of the sense of justice and views of the population on the consequence options was completed on 21 June 2017. A link: Kääriäinen, Juha, Kriminologian ja oikeuspolitiikan instituutti, Katsauksia 21/2017.
- During January 2018, an evaluation memorandum on the issue will be prepared, which will be sent for circulation for comments during spring 2018.
- On 1 November 2017, the Ministry of Justice set up a work group to prepare the national implementation of the EU directive on the fight against fraud (2017/1371).
4.5 Reducing the duration of the criminal procedure
- During January 2018, an evaluation memorandum on the issue will be prepared which will address, among other things, issues involving economic crime. The memorandum will be sent for circulation for comments in spring 2018,
- On 1 November 2017, the Ministry of Justice set up a work group to prepare the national implementation of the EU directive on the fight against fraud to the Union's financial interests by means of criminal law (2017/1371).
4.6 Cooperation project between the authorities responsible for enforcement, prosecution, criminal investigation and taxation to enhance the tracing, safeguarding and confiscation of the proceeds of crime
- The Ministry of Finance has launched a project to intensify the national tracking of proceeds from crime.
- The final report and training material are scheduled to be completed by the end of 2018.
4.7 Enhancing enforcement procedures for confiscating the proceeds of crime after final judgment, especially in international cases
- The Office of the Prosecutor General has launched a project to intensify the international tracking of proceeds from crime.