When does financial crime become relevant for a business?

It is particularly relevant when an organisation handles larger transactions, operates in sectors with elevated money laundering risk, or is subject to supervision under AML rules and related sector legislation.

What measures help prevent and manage financial crime risks?

Common measures include AML risk assessments, customer due diligence and transaction monitoring, staff training and reporting routines, and controls that reduce exposure to accounting crime, tax offences and other economic crime.

Financial crime

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Glossary
Financial crime

Explained – what does financial crime mean?

Financial crime is an umbrella term for offences committed to obtain an economic advantage or avoid an economic loss. It includes, for example, tax crime, accounting crime, insider trading/insider dealing and money laundering. Within the AML regulatory framework, an AML lawyer plays a key role in ensuring businesses comply with legal requirements. Financial crime is addressed both in the Penal Code and in sectoral legislation such as the Anti-Money Laundering and Counter-Terrorist Financing Act (2017:630). This section sets out a practical financial crime definition for compliance teams.

When does financial crime become relevant?

Questions around economic crime become particularly relevant when companies or organisations process larger transactions, operate in high-risk sectors for money laundering, or are subject to specific supervision. This includes banks and other financial institutions, but also businesses handling cash or high-value goods. The issue also arises regularly in the audit and legal professions.

Illustration of economic crime: scales of justice balancing money and legal risk symbols, representing fraud, financial crime compliance and enforcement.

Points to consider regarding economic crime

There are several core measures organisations may need to implement to prevent and manage risks linked to financial crime.

Carry out risk assessments under the Anti Money Laundering Act and update them regularly as part of a risk based approach AML.
Establish internal procedures for customer due diligence, enhanced customer due diligence where appropriate, and ongoing transaction monitoring/transaction analysis.
Train staff to recognise and report a suspicion of money laundering or terrorist financing, including clear reporting suspicious activity channels.
Ensure documentation and statutory reporting to the Swedish Financial Intelligence Unit (Finanspolisen) where there is suspicion of an offence.
Implement controls to prevent accounting crime and tax offences (including tax evasion).
Align governance and internal controls to the business’s risk profile and the wider anti money laundering framework and know your customer requirements.

These measures help organisations meet their legal obligations while strengthening trust with authorities and clients across Europe.

Financial crime

Why is financial crime important?

Economic crime threatens both the wider economy and individual businesses. It can distort competition, erode confidence in markets and contribute to the financing of other criminality. It is therefore a priority area for authorities and legislators across the EU.

For companies, a clear strategy against financial crime reduces the risk of legal or other consequences while enhancing organisational credibility. Compliance with AML requirements is central to this work and affects all actors connected to financial flows, from KYC procedures to customer due diligence requirements.

Proactively preventing economic crime not only ensures compliance. It also strengthens long-term relationships with customers, investors and partners by demonstrating that the organisation takes responsibility for countering illegal economic activity. For teams asking “what is economic crime?”, the focus should be on practical controls and governance.

Economic crime covers offences committed for economic gain, such as tax crime, accounting crime and money laundering.

Businesses are particularly exposed when handling financial transactions, being under supervision, or operating in sectors with elevated risks of money laundering and tax evasion.

Companies can prevent issues by implementing systematic controls. Key examples include:

Conducting risk assessments and customer due diligence checks (KYC meaning and know your customer requirements in practice).
Carrying out ongoing transaction monitoring and structured transaction analysis.
Training staff on applicable legal requirements and the AML regulatory framework.
Maintaining clear procedures for reporting suspicious activity to competent authorities.

It undermines trust in the financial system, distorts competition and may be used to fund other criminality, including terrorism or organised crime.

Reporting duties apply to, among others, banks, auditors, lawyers and other businesses subject to the Anti-Money Laundering Act; they must report to the Swedish Financial Intelligence Unit on suspicion of money laundering.

Financial crime always has an economic motive – either to obtain an undue financial advantage or avoid costs. It differs from, for example, violent crime, where the motive is often not economic. Examples include: