Strategy and action plan for tackling the grey economy and economic crime 2024–2027

Prevent financial irregularities and effective procurement in wellbeing services counties

Raising awareness in wellbeing services counties about various phenomena and practices related to the shadow economy and financial crime, including cartels, corruption, unjustified invoicing and the use of undeclared labour. The project is a continuation of the meeting and training round in the wellbeing services counties, and it is targeted at county councillors, middle management and employees carrying out supervision during the contracting period.

The FCCA, the Tax Administration and the Police are responsible for implementing the project.

Government proposal to amend the Act on Transport Services

The project’s goals are to bolster consumer trust in the taxi industry, improve the availability of taxis, consider different user groups across the nation, as well as enhance the supervision of the taxi industry and tackle the grey economy.

Ministry of Transport and Communications is responsible for implementing the project.

Amend VAT registration provisions

It will be examined whether, similar to certain other EU countries, it would be possible and appropriate to introduce provisions into the national VAT legislation for the registration of VAT-registered operators due to abuses of the VAT system. The aim of the amendment would be to prevent intentional and systematic grey economy activities.

Ministry of Finance and Tax Administration (and Ministry of Economic Affairs and Employment) are responsible for implementing the project.

Develop sanctions for third-party disclosure obligations and enable a negligence penalty for unjustified withholding tax refund applications

The sanctions for third-party disclosure obligations will be developed by raising the upper euro-denominated limit of the penalty for non-compliance by third-party reporters and by repealing section 87 of the Act on Assessment Procedure. The development will take into account the impact of EU law on sanctions. In addition, the imposition of a negligence penalty on refunds of withholding tax in accordance with section 11 of the Act on the Taxation of Non-residents’ Income and Capital will be assessed when tax refund applications are unjustified and, if necessary, the relevant legislative changes will be implemented.

Ministry of Finance and Tax Administration are responsible for implementing the project.

Professional enablers and facilitators

The project will develop proactive prevention of the activities of professional enablers and a set of measures aimed at this in accordance with the OECD recommendations. The project will actively participate in ongoing relevant international development projects. The work of the national cooperation network of public authorities related to professional enablers will be continued. The adequacy and appropriateness of legislation will be assessed, including national information exchange provisions and international exchange of tax information. Efforts will be made at the national level to raise awareness not only among supervisory authorities but also within the private sector about the role of professional enablers. Opportunities for developing information exchange between public authorities and private sector entities will also be assessed in the future.

Tax Administration, Ministry of the Interior, National Bureau of Investigation, Customs, Prosecution Service, Office of Bankruptcy Ombudsman, Financial Supervisory Authority (FIN-FSA), Regional State Administrative Agency and Ministry of Finance are responsible for implementing the project.

Project on companies removed from the Trade Register

The aim of the study project is to identify the legal provisions and procedures of public authorities that cause key problems related to companies that have been removed from the Trade Register (deregistered), and to draw up concrete proposals for eliminating the problems.

Finnish Patent and Registration Office, Tax Administration, National Enforcement Authority Finland and Employment Fund are responsible for implementing the project.

Prevent the grey economy in enforcement evasion situations – investigate the need to amend legislation to respond to changes in the operating environment

The aim is to draw up a report that mainly assesses the legislative means by which enforcement evasion could be addressed more effectively. The evaluation will focus on the amendments needed to the Enforcement Code to achieve the objective, such as regulations concerning the enforcement authority’s access to information and artificial arrangements. Additionally, it will be examined whether there are any obstacles in legislation to the full utilisation of analytics.

The responsible party is the National Enforcement Authority Finland, which will be in charge of the project and cooperate the Ministry of Justice in its implementation.

Secure the Tax Administration’s access to information

The Tax Administration’s access to information must be secured so as to ensure that the Tax Administration has a sufficient information base to carry out taxation and tax control. In addition to tax revenue, a sufficient knowledge base will also ensure uniform taxation and equal treatment of all persons liable to pay tax. Securing access to information concerns, in particular, the coverage of third-party disclosure obligations.

Ministry of Finance and Tax Administration are responsible for implementing the project.

Develop the powers and inspection rights of the Tax Administration and Customs

The project will prepare the necessary legislative proposals for updating the powers and inspection rights of the Tax Administration and Customs. The draft provisions must be drawn up in such a way as to enable legislation to carry out a digital forensics function in tax audits carried out by Customs and to construct it for the Tax Administration.

Ministry of Finance, Tax Administration, Customs and Ministry of Justice are responsible for implementing the project.

Implement the Grey Economy Information Unit legislative amendment

The need to change the powers of the GEIU has been mapped in cooperation between the Tax Department of the Ministry of Finance and the Grey Economy Information Unit (GEIU) of the Tax Administration. The amendment make it possible to draw up phenomenon reports on the currently hidden phenomena of the grey economy. The change promote the flow of information between the different information systems in use in public administration and develop digitalisation in the exchange of information between public authorities.

The Ministry of Finance, the Grey Economy Information Unit, the Tax Administration and stakeholders are responsible for the implementation of the project and will introduce new services provided by the Grey Economy Information Unit.

Currency and correctness of the information in the register of beneficial owners

Options to improve the currency, correctness and usability of information in the register of beneficial owners will be explored. The most appropriate option will be implemented.

Finnish Patent and Registration Office, Tax Administration and Ministry of Economic Affairs and Employment are responsible for implementing the project.

Develop Customs analysis and intelligence analytics

The project aims to enhance the analytics capabilities of Customs’ Control Department in analysis, intelligence and commercial risk management to improve the effectiveness of combating the grey economy and enforcing sanctions. The aim is to ensure the basic technological preconditions for analytics in order to utilise the necessary data to bring out the operators at the heart of the grey economy and sanction circumvention.

Customs is responsible for implementing the project.

Partial reform of the Act on Discretionary Government Grants

The task of the working group is to assess the need to amend the Act on Discretionary Government Grants as a whole. In particular, the task is to assess issues such as the need to lay down more comprehensive provisions on the obstacle criteria for granting and paying discretionary government grants. The working group will draw up any proposals it deems necessary in the form of a government proposal.

Ministry of Finance is responsible for implementing the project.

Investigate the establishment of a register of estate administrators

Implementation options, benefits and costs of up-to-date registration of those acting as administrators of bankruptcy estates and in corporate reorganisations will be investigated. The aim of the register is to make transparent to the courts, creditors, debtors and other insolvency stakeholders the persons acting and qualified to act as estate administrators. The decision to set up the register will be made and evaluated on the basis of the investigation.

Office of Bankruptcy Ombudsman and Ministry of Justice are responsible for implementing the project.

Finland’s preparation for the FATF’s fifth evaluation round and the coordination of the FATF’s evaluation of Finland in 2027 and 2028

In the implementation project, a detailed plan will be drawn up for the Finnish measures during the FATF’s fifth evaluation round. The plan would include a timetable for the participation of Finnish experts in mutual assessments and the tasks of various national authorities in the evaluation round. The project will also coordinate the preparation for the evaluation of Finland, including the compilation of a material bank containing the written material to be prepared for the assessment.

Ministry of Finance is responsible for implementing the project.

Harmonise and develop procedures for the registration of foreign persons, as well as ensure the correctness of registry information and enhance supervision

Registration procedures for foreigners will be developed and harmonised. The operating conditions of the multi-agency field of identity misuse will be improved. The exchange of information between public authorities will be improved by developing legislation and systems as well as procedures for enabling the exchange of information.

Tax Administration, Immigration Service, National Police Board, Ministry of the Interior, Digital and Population Data Services Agency, Ministry of Finance, Ministry of Economic Affairs and Employment and Ministry of Justice are responsible for implementing the project.

Develop international cooperation between public authorities in the field of occupational safety and health

The project will intensify international cooperation in occupational safety and health enforcement and therefore increase the impact of supervision on combating the grey economy, labour-related crimes and undeclared work. The project promotes the fight against undeclared work at the EU level by developing cooperation between the authorities in operative activities.

Occupational Safety and Health Administration is responsible for implementing the project.

Project to develop cooperation between public authorities

Effective action against the grey economy, undeclared work and the exploitation of workers requires effective and close cooperation between public authorities. The objective of the project to develop cooperation between public authorities is to further enhance collaboration between public authorities in monitoring and information exchange both regionally and nationwide.

The impact and progress of the project will be assessed through regular monitoring throughout the duration of the project.

Enhance the recovery of the proceeds of gang crime prevention – Al Capone

The purpose of the project is to introduce economic crime investigation methods into gang crime and organised crime prevention, focusing on the concept of criminal proceeds (tactical measures related to money and assets), and to enhance understanding of the phenomenon within law enforcement, thereby facilitating more effective identification of organised crime and gang-related activities. The additional effectiveness of the prevention measures is sought precisely from the tracing and seizure of the proceeds of crime, that is, property.

Ministry of the Interior, National Police Board and Police University College are responsible for implementing the project.