Contents INTRODUCTION RESULTS REPORT 17. Priority areas 18. Performance areas 27. Governance and support 34. Table reporting 44

Transcription

1 Annual Report 2016

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3 Contents INTRODUCTION The Director-General summarises the year 3 The year in brief 4 About the Swedish Economic Crime Authority 6 About economic crime 9 RESULTS REPORT 17 Summary analysis 17 Priority areas 18 Organised crime 18 Serious economic crime 19 Financial market crime 22 Asset-oriented crime fighting 24 International work 24 Performance areas 27 Crime prevention process 27 Intelligence process 29 Investigation and prosecution process 31 Governance and support 34 Internal governance and control 34 Rights development and legal governance 35 Strategic collaboration 38 IT and skills provisioning 39 Table reporting 44 FINANCIAL STATEMENTS 51 1

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5 The Director-General summarises the year Good results and new challenges In the past year, the Swedish Economic Crime Authority was in the media limelight due to investigations of well-known individuals and companies. But the biggest headlines do not reflect our broad range of work from crime prevention efforts, intelligence work, investigation and prosecution to proceedings in court. We meet everything from the small business operator who commits bookkeeping offences out of negligence to carefully planned serious economic crime that puts our welfare systems at risk through advanced criminal arrangements where your tax money and mine ends up in the pockets of criminals. The Swedish Economic Crime Authority s results development for 2016 shows that prosecutions have increased and that more people are prosecuted for more serious crime. The influx of suspected crime from the Swedish Tax Agency is also record breaking after several years decline. We have succeeded in our ambition to begin preliminary investigations against a majority of the people we previously identified as drivers of serious economic crime. During the year, we also played an important role and participated in nearly 80 per cent of the cases in the Operational Council, the inter-agency effort against organised crime. The large influx of suspicions of serious crime of course takes a large share of our resources. Therefore, we have to constantly improve the investigation and prosecution process so that we are equipped for the rapid develop ment. We are continuing to streamline the handling of the simpler cases to be able to rally our forces and maintain a high level of quality in extensive and complex cases. In 2016, we were able to double the prosecutor resources in around 30 investigations. We are also in the midst of a long-term mustering of strength in the IT area. Effective information management should provide shorter investigation times and increase our ability to secure digital traces and evidence. The Swedish Economic Crime Authority is continuing to strengthen the crime prevention work, in part through a more knowledge based approach, reinforced resources and clearly pointing out undesirable consequences of laws and rules. The intensive collaboration with other important players is continuing. Companies are increasingly used as advanced tools to commit economic crime. In the Swedish Economic Crime Authority s latest status report, we see that an apparently honest façade can conceal several different kinds of criminal arrangements and the driving individuals have expertise to quickly exploit gaps and loopholes. To address this, the already good collaboration between us authorities needs to become even better. We need to have a common social perspective, take more interagency initiatives and work across boundaries to reach the complicated criminal arrangements. There are many good forces here and I am prepared to provide support to advance the positions further in Eva Håkansson Director-General 3

6 The year in brief January On 1 January, a law on the so-called double jeopardy ban will enter into effect. Among other things, the law means that prosecutors cannot begin a tax evasion process if the Swedish Tax Agency has already made a decision regarding a tax surcharge. May Raids in the restaurant industry The Swedish Economic Crime Authority conducts an extensive raid regarding unreported employment in the restaurant industry in Stockholm. February Five people with ties to SAAB are charged with serious economic crime Charges are filed against three people from the former board and two former senior executives in SAAB Automobile AB. All five are charged with seriously obstructing tax inspections. April Raid against driving school business in Värmland In April, the economic crime chamber in Linköping conducts a comprehensive effort against a driving school business that was conducted without accounts and without permits in Värmland and the surrounding area. Eight people are charged with serious insider crime and insider crime The prosecuted trade had a turnover of around SEK 4.3 million and the profits amounted to around SEK 2 million, an illegal gain that the prosecutor now moves should be forfeited, which means that it should go to the state. Authorities set requirements on the banks Information from banks is in most cases a prerequisite for being able to investigate economic crime. Criminal investigation agencies send in a formal request to the Ministry of Finance for a change of the Banking and Finance Business Act. Risks of the abolishment of the auditing obligation In June, the Swedish Economic Crime Authority released the report Effects on economic crime after the abolishment of the auditing obligation for small limited liability companies. One conclusion in the report was that the abolishment of the auditing obligation is a risk factor that limited companies are used as tools for crime. A press conference is held in connection with the release of the report. Supreme Court ruling regarding branch offices The Swedish Supreme Court confirms in a ruling that branch offices are required to maintain accounting records for operations conducted in Sweden, but that it is not possible to prosecute bookkeeping offences. The Swedish Economic Crime Authority immediately submits a petition for a legal change to the Ministry of Justice. 4

7 August Three members of SAAB s former management were convicted of serious economic crime Charges were filed with the Vänersborg District Court against three former board members at SAAB Automobile AB who were charged with seriously obstructing tax inspections and gross fraud. November Major raid against illegal tobacco factory Raids in the Gothenburg area against some 20 tobacco retailers, a few wholesalers and a factory with extensive production of tobacco. Nine people suspected in a set-up where SEK million was withheld from the state in unpaid excise duties. June October Aquittal in the HQ case The district court pronounces an aquittal of four former representatives for HQ AB and/or the subsidiary HQ Bank AB, and the companies auditor in charge. In connection with the ruling, a press conference was held at the Swedish Economic Crime Authority. The chief district prosecutor announces later in July that he will not appeal the ruling. The Swedish Economic Crime Authority commissions the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime to evaluate the HQ case to be able to identify lessons learned. Almedalen: Status report on economic crime in Sweden Every two years, a status report on economic crime is presented. The 2016 status report was released in connection with a seminar in Almedalen (the location of a week of political events) in which Minister for Home Affairs Anders Ygeman participated. Prison sentences for serious tax evasion and serious bookkeeping offences concerning the diesel trade The principal was sentenced to six years in prison for serious tax evasion and bookkeeping offences with regard to the diesel trade. The tax evasion amounted to around SEK 25 million with regard to excise duties and VAT. Successful raid in a major international VAT carousel affair Justice authorities in Germany, the Netherlands, Poland, Italy, Ireland, Spain, Sweden, Switzerland and the UK carried out a coordinated raid with the support of Eurojust and Europol. The raid probably dismantled a criminal organisation responsible for having defrauded the EU of VAT up to a combined amount of around SEK 3 billion. December Conviction of a board member of Samtid & Framtid AB The court of appeal sentences a board member of a subsidiary to the Sweden Democrats, Samtid och Framtid AB, to a probationary sentence and fines. Medical students blogging about equities are convicted of serious improper market influence Two medical students are convicted of several cases of serious improper market influence for systematically pushing up share prices in a total of 14 different pharmaceutical companies over the course of one year, and then dumping their holdings by selling all of their shares. They had made more than SEK 2.5 million in illegal equities trading. 5

8 About the Swedish Economic Crime Authority The Swedish Economic Crime Authority is a prosecutor authority with the task of preventing and fighting economic crime. The authority is a knowledge centre for economic crime and has coordination responsibility for the efforts of other authorities in the area. The assignment comprises the entire chain from intelligence gathering, investigation and prosecution to proceedings in court. In parallel with the investigation and prosecution, the authority works with crime prevention efforts with the aim of reducing the risk of economic crime. This is done in consultation with other authorities, trade associations and the business community, as well as the financial sector. Key ratios Number of cases received 5,810 Number of cases concluded 6,265 Number of individuals prosecuted 1,972 Average investigation time Crime proceeds, amount fined 205 days SEK 114 million Authority model At the Swedish Economic Crime Authority, prosecutors, police officers and other investigators with various fields of expertise as well as administrators work side by side in investigation groups. The aim of brining together various professional competencies is to achieve as effective an investigation and prosecution work as possible. Two employers, joint leadership Police officers who work for the Swedish Economic Crime Authority are employed by the Police Authority. At the Swedish Economic Crime Authority, they are organisationally places at the Office of Economic Crime. Other employees are employed directly by the Swedish Economic Crime Authority. The police activities are led by a police commissioner and are an integrated part of the authority s way of working. The operations are conducted based on a joint assignment with common management and governance. The authority s operational activities are conducted at a total of nine chambers for economic crime, one chamber for the financial market and five police operations units. Our chambers and police operations units are placed in Stockholm, Gothenburg, Malmö, Linköping and Umeå. Operational units belonging to the main cities are also in Uppsala, Örebro and Sundsvall. The chambers for economic crime are responsible for investigation and prosecution of the criminal reports received by the authority. The police operations units conduct intelligence gathering and surveillance and are responsible for securing and analysing seizures in IT environments. The Swedish Economic Crime Authority s head office stands for management and support of the operational activities and also coordinates the authority s crime prevention work. The Swedish Economic Crime Authority in brief Director-General Eva Håkansson Number of employees including police officers Most common types of crime Operating locations Priority areas Approximately 600 Tax evasion and false accounting Stockholm, Uppsala, Gothenburg, Malmö, Umeå, Sundsvall, Linköping and Örebro Organised crime Serious economic crime Financial market crime Asset-oriented crime fighting International cooperation 6

9 The head office is located in Stockholm and consists of: Office of operational management Office of the Director of Public Prosecution Legal affairs unit Unit for governance and security Unit for personnel and communications issues IT unit Umeå Stockholm Gothenburg Linköping Malmö 7

10 Types of crime Economic crime is a collective term for many kinds of crime. The most common economic crime is tax evasion and false accounting. The Swedish Economic Crime Authority primarily investigates crime that falls within these categories: Creditor crime (Ch. 11 of the Swedish Penal Code) Example: Book-keeping crime and dishonesty to creditors Crime against the Tax Penal Act Example: Tax evasion and obstructing tax inspections Violations of the Swedish Companies Act Example: Violation of the prohibition against loans to related parties and so-called front activities Violations of the Market Abuse Penalty Act in trade in financial instruments Example: Insider crime and improper market influence Other matters with special requirements on knowledge of financial circumstances, business conditions and tax law Example: Fraud, embezzlement, criminal breach of trust, bribery and money laundering if the crime was committed in the scope of an enterprise and requires extensive and qualified assessments of accounting information Violations of the EU s financial interests 8

11 Men account for 83 per cent of the suspects and the largest age category is the group of those aged years 1 About economic crime Economic crime is a significantly larger societal problem than what the reported crime statistics show. The unreported crime is estimated to be large since the reported crimes are mainly a result of the scope and emphasis of the inspection activities. Economic crime does not affect a person subjected to crime in the same way that, for example, a burglary or battery does. Over the years, many people have called economic crime victimless crime, but there are many victims of economic crime. The whole society and all of its citizens are affected when individuals and companies withhold taxes and employer s contributions, take money that they are not entitled to or out-compete serious business operators with unreported labour, low wages and dangerous working environments. In 2016, the authority s economic crime status report was published, which is compiled every two years. There, serious economic crime was defined as planned arrangements with the aim of profiting, where companies are used to carry out a criminal plan. Companies are attractive tools for crime since they open lucrative new criminal opportunities, offer a legitimate façade to hide activities behind and the possibility to launder criminal gains. Limited companies are the most beneficial corporate format when companies are used as criminal tools. A common factor for the principals is that they are generally not registered as formal representatives in 1 The Swedish Economic Crime Authority s status report on economic crime in Sweden 2016 the company s board, but rather use fronts, straw men, fictive individuals and aliases to distance themselves from the crimes. This filter reduces the risk of discovery of the actual principals (beneficial owners). One of the most important tasks for the Swedish Economic Crime Authority is to identify and prosecute the people who have a high capacity to commit economic crime, are driving actors and cause extensive societal damage through their crime. The authority then conducts targeted efforts against strategic and leading individuals in the serious economic crime for a few years. Effective crime fighting can be conducted thanks to effective intelligence gathering activities and a good collaboration with the involved authorities. The majority of the perpetrators who plan and carry out advanced economic crimes have good knowledge of legislation and regulations, logistics and organisation. Some are not previously known to the police, but many of the perpetrators and their networks continuously recur in the context. Serious economic crime can be found in all sectors and industries. The industry is chosen according to the perpetrator s experience, knowledge, networks and the possibility of exploiting weaknesses in systems. More than half of the reports to the Swedish Economic Crime Authority relate to crimes that are relatively easy to investigate, i.e. the high-volume cases. It is most often a question of previously unpunished small business operators who have committed bookkeeping offences or a violation of the prohibition against loans to related parties. 9

12 Example case 1 Large case Excise duty violations as a part of organised crime The preliminary investigation at the Swedish Economic Crime Authority, which was conducted in the inter-agency effort against serious organised crime, was completed in spring In September 2016, the court of appeal confirmed the prison sentences and long prohibitions against conducting business for three people convicted of gross tax evasion and gross bookkeeping crime. 10

13 Individuals A, B and C import lubricating oil and sell it as diesel whereby they fail to pay excise duty. To impede discovery, a company in the UK is used as a middleman. In this set-up, three countries are involved. The UK where contracts are signed, Poland that exports oil and Sweden where lubricating oil/ diesel is delivered and money is received. Individual A pays money from his company s accounts to companies that are controlled by individual B. According to the bookkeeping, it looks correct and there is documentation for the payments. Individual B has a number of foreign companies, which the money is sent between, with a final destination in Belarus. There are bank cards for the Belarus accounts that are then used to withdraw cash in Sweden. Individual B accordingly provides a service to launder money for Individual A. Individual B Sentenced to six years in prison and a 10-year prohibition from conducting business for gross tax evasion and gross bookkeeping crime. Individual C Sentenced to six months in prison for bookkeeping crime. Individual A Sentenced to two years in prison and a fouryear prohibition from conducting business. 11

14 Example case 2 High volume cases Bookkeeping offence discovered in bankruptcy In 2016, more than 2,600 cases of this kind were reported. The most common offences involved in the high-volume cases are bookkeeping offences or tax evasion. In order for a case to be classified as a high- volume case, it must take a maximum of eight hours to administer and be finalised within 50 days. This is what a typical high-volume case may look like. 12

15 A bankruptcy trustee reports to the Swedish Economic Crime Authority that a representative of a limited liability company may be suspected of bookkeeping crime, in part regarding the absence of continuously kept accounts during a few years prior to the bankruptcy, in part regarding two cases of delayed annual reports (i.e. not prepared within six months after the end of the financial year). An administrator calls the representative to a hearing within two weeks. He is informed of his legal rights, including the right to a public defender. He does not feel he needs this and admits to the interrogator (a police officer at the Swedish Economic Crime Authority) that he, in two cases, due to carelessness, failed to prepare an annual report on time. He has had personal problems and the company had failing profitability, which led to an inability to pay a bookkeeper and auditor. He confesses and is prepared to accept an order of summary punishment in a meeting with the prosecutor. An order of summary punishment is issued for a suspended sentence, plus a daily fine of 40 days at SEK 190 each and a compulsory fee to the Victims of Crime Fund of SEK Hours In order for a case to be classified as a highvolume case, it must take a maximum of eight hours to administer and be finalised within 50 days. 13

16 Example case 3 VAT fraud Gross tax evasion in trading with mobile phones A priority case that the Swedish Economic Crime Authority worked with in 2016 concerned VAT fraud, which can also be called a Missing Trader Intra Community (MTIC). The case concerned serious economic crime concerning cross-border trade in mobile phones from another EU country to Sweden. 14

17 When trade takes place between e.g. a mobile phone supplier in a different EU country and a buyer in Sweden, the tax regulations are such that the seller sells free of VAT while the buyer has to report and pay the VAT in Sweden. The arrangement with a phantom company is based on the VAT to the Swedish state never being paid in. The aim of this is that the buyer in a later stage will be able to buy mobile phones at a price below its value, which gives them the possibility of maximising their profit and claim a deduction for input VAT on the false invoices from the phantom companies. So these VAT frauds are about buying cheaply and miking the tax system for VAT money. To evade the VAT, the set-up is such that one company is used to act as a phantom company, which from the outside appears obliged to report and pay VAT on the purchase. The actual buyer (who accordingly hides behind the phantom companies) can buy cheap mobile phones and then make deductions for input VAT on the false invoices from the phantom companies. Buyer In the case at hand, the actual buyer was convicted in both district court and the court of appeal of gross tax evasion and gross bookkeeping crime. The sentence was five years and six months in prison. There was a danger of SEK 21 million being withheld from taxation. Accomplice Another person was charged and convicted for complicity in gross tax evasion and gross money laundering. The sentence was two years and six months in prison in the court of appeal. 15

18 Nearly 90 per cent of the authority s operational resources are applied in the scope of the investigation and prosecution process 16

19 Results report Summary analysis The Swedish Economic Crime Authority s activities show a positive results development throughout Prosecutions have continuously increased and the authority s balance of on-going cases has decreased. The work against gross organised crime and serious economic crime has intensified was also marked by a major focus on operational development and streamlining and improving the quality of the authority s processes. This work has been conducted in a number of areas, both internally and in cooperation with external actors. Ú Nearly 90 per cent of the authority s operational resources are applied in the scope of the investigation and prosecution process. In the scope of this process, all of the authority's criminal cases are distributed over three categories based on how extensive the required investigation work is: simpler high-volume crimes, project cases and especially demanding cases. A strongly contributing factor behind the authority s total efficiency for all case management is the special handling of high-volume crimes. Nearly half of the authority s cases are classified as high-volume crimes and are handled in special so-called high-volume crime functions. These functions work efficiently with small, but protected resources, and thereby free up capacity in the other operations to combat the more serious economic crime. Ú The high-volume crime handling also shows very good results for 2016, with a low work balance and short through-put times. The authority s handling of the more serious economic crime is categorised as project cases and especially demanding cases. In the analysis done in connection with the 2015 annual accounts, it was confirmed that the authority s prioritisation of the especially demanding cases, in combination with declining investigation resources, led to negative effects for the handling of the project cases of a medium-level of difficulty, with decreasing prosecutions and a rising work balance as a result. In 2016, the authority successfully broke this trend. Ú Prosecutions have increased substantially in the economic crime chambers, at the same time that the work balance has decreased. To handle the authority s especially demanding cases with a high level of quality, the authority doubled its prosecution resources in around 30 investigations. This has in turn placed demands on the handling of other cases. To keep the handling of the other cases from grinding to a halt, the authority moves cases and resources between the operational locations based on a national perspective. Ú Prosecutions are also on the rise at the authority's financial market chamber. In addition to this, the through-put times at the chamber have decreased. The financial market chamber also strengthened its collaboration with the Swedish Financial Supervisory Authority, in part because new legislation is being introduced that means that some offences are being decriminalised and the actions shall instead be punished through administrative sanctions issued by the Swedish Financial Supervisory Authority. In 2016, the authority s economic crime status report was published, which is compiled every two years. The review in this year s status report of the authority s especially demanding cases shows that there are large criminal proceeds in these cases and often international ties. Ú In 2016, the authority continued to focus on the asset-oriented crime fighting, both internally and in collaboration with other authorities. The authority also sees a development where the number of international judicial assistance applications continues to increase, and drafted a strategy for the international work during the year. The Swedish Economic Crime Authority s internal intelligence gathering activities is of major significance to the work against the most serious economic crime. The direction of the intelligence gathering is to work against organised crime and serious economic crime, such as excise duty offences, money laundering and regional phenomena and occurrences that cause significant regional harm. The work against the gross organised crime takes place in the scope of the Operational Council, which decides on efforts, and the regional intelligence centres. In light of a crime trend where companies are used as criminal tools to a growing extent, the Swedish Economic Crime Authority s expertise and resources are increasingly in demand in these contexts. Ú The Swedish Economic Crime Authority participated in more than 80 per cent of the Operational Council s efforts during the year. The authority s time spent on these cases increased by 50 per cent in 2016 compared with Stockholm accounts for the majority of the Swedish Economic Crime Authority s resources in the Operational Council. Another priority in 2016 was the authority s targeted effort at actors that commit economic crime where it is assessed that they have extensive capacity, are driving actors and cause significant financial damage. During the year, the intelligence gathering activities worked actively towards a number of 17

20 identified individuals, which has resulted in the beginning of preliminary investigations against the majority of these actors. The Swedish Economic Crime Authority wants to take a comprehensive approach to the economic crime. One key area is the resource and method efforts conducted in the scope of the authority s crime prevention activities. Ú The Swedish Economic Crime Authority s crime prevention development work has been focused on the more serious economic crime. By working based on knowledge and in collaboration with other authorities and organisation, the authority has driven a number of regional crime prevention projects and worked to increase awareness in society about how economic crime can be prevented. By preventing simpler crime, which is often due to ignorance, major gains can be achieved for individual citizens and the authority by freeing up resources to fight more serious crime. One example of this is the collaboration that the Swedish Economic Crime Authority began in 2016 with the Swedish Companies Registration Office to prevent crime due to basic bookkeeping crime, such as late annual reports. In the legal area, the Swedish Economic Crime Authority drafted a number of proposals, reports, etc. during the year. Together with other criminal investigation authorities, the Swedish Economic Crime Authority submitted proposals to the government on a requirement of promptness at the banks in the disclosure of information in on-going investigations. The authority also released the report Effects on economic crime after the abolishment of the auditing obligation for small limited liability companies. One conclusion in the report was that the abolishment of the auditing obligation is a risk factor that limited companies are used as tools for crime. Priority areas Organised crime The inter-agency effort against organised crime has been under way since 2009 and includes 12 agencies in and outside the justice system. The Swedish Economic Crime Authority is a central actor in this effort and has contributed since it began. The Swedish Economic Crime Authority contributes expertise and resources at a strategic and operational level. The boundary between economic crime and organised crime is fluid. Economic crime can generate large profits. At the same time, the risk of discovery and the sentences are perceived to be significantly lower, which is why economic crime is an attractive area of crime for actors in organised crime. In light of a crime trend where companies are used as criminal tools to a growing extent, the Swedish Economic Crime Authority s expertise and resources are increasingly in demand in this effort. A large number of the cases in the inter-agency effort against organised crime relates to various kinds of economic crime. In 2016, the Swedish Economic Crime Authority participated in more than 80 per cent of the efforts decided by the Operational Council. Efforts that the Swedish Economic Crime Authority participated in include tax evasion for VAT, unreported labour, excise duty crime and money laundering, human trafficking and credit fraud. The authority increased its resource input by 50 per cent in 2016 compared with 2015 for cases conducted within the Operational Council. Stockholm is especially heavily loaded and more than doubled its operational resource use in 2016 compared to the year before. Of Stockholm s time spent, more than 40 per cent was devoted to a single case. Stockholm accounts for more than 80 percent of the authority s devoted resource time in cases conducted in the Operational Council. 18

21 A prerequisite for discovering and prosecuting actors that commit serious crime is a legally assured and effective information exchange. During the year, the possibilities for the authorities in the inter-agency effort against organised crime were further strengthened when the Information Obligation for Cooperation Against Some Organised Crime Act entered into effect in The Swedish Economic Crime Authority conducts collaborative projects in parallel with the Financial Intelligence Unit, the Swedish Tax Agency, Swedish Customs and the Swedish Security Service to ensure that the stronger and improved possibilities of information exchange are utilised. In 2015, the government commissioned the collaborating agencies to develop the inter-agency effort. The assignment includes developing the organisation to also comprise local crime fighting with a special focus on the problems in disadvantaged areas. Seven new regional collaboration councils were formed to organise the work. The new direction means that more areas of crime will be included in the already established national collaboration and a special focus will be directed at problems in the 14 geographic areas that the Police Authority deems to be particularly high priorities. In the work, particular attention will be paid to opportunities fighting terrorism, money laundering and crimes against the welfare system. The Swedish Economic Crime Authority participates in the work to develop the effort at a strategic level and operationally through a pilot project that is conducted in the Police Authority s eastern region. Within the pilot project, the Swedish Economic Crime Authority participates in activities aimed at investigating and prosecuting economic crime and disrupting criminal activities in the appointed area. The broader assignment entails a challenge for the Swedish Economic Crime Authority. In a short period of time, the project has generated multiple cases and the assessment is that the number will increase as the project progresses. Ú The authority is faced with prioritisations of resources against crime that is of a local and national nature, respectively. In addition to the work being conducted in the interagency effort against serious organised crime, the Swedish Economic Crime Authority conducts collaborative projects and cases with a bearing on organised crime on its own and together with other authorities. The Swedish Economic Crime Authority s targeted efforts against serious economic crime have an especially large number of contact points with individuals and companies that occur in the interagency effort against serious organised crime. One example of such a collaborative project is the government assignment regarding the illegal handling of products subject to excise duty together with Swedish Customs, the Police Authority and the Swedish Tax Agency. Serious economic crime Serious economic crime refers to planned arrangements with the aim of profiting, where companies are used to carry out a criminal plan. The sections below present the authority s crime fighting in the areas of VAT and excise duties, money laundering and financing of terrorism, tax evasion and financial market crime. 19

22 VAT and excise duties In the authority s operational focus, VAT crimes (so-called VAT carousels) and excise duty crime are pointed out as central areas for the operations. These areas are also prioritised areas internationally through the EU policy cycle (see more in the section International work). During the year, the authority worked to obtain a shared prioritisation of the issues and that national needs should determine the extent to which the authority gets involved in international activities with regard to excise duty and value added tax. The legislation in the excise duty area is complex. To increase legal security and the quality of the investigations, a method concept was developed in 2015 for the investigation and prosecution of excise duty crime (tobacco). An equivalent method concept is being prepared for VAT crime. Government assignment on the illegal handling of products subject to excise duty In November 2015, the government decided on an assignment to Swedish Customs, the Swedish Economic Crime Authority, the Police Authority and the Swedish Tax Agency regarding illegal handling of products subject to excise duties. Swedish Customs is primarily responsible for the project with assistance from the Swedish Economic Crime Authority. During the year, the authorities mapped how the collaboration is conducted to prevent illegal handling of such products and submitted proposals on how agency collaboration can be improved in an interim report to the government in October. The continued work includes implementing the proposals on improved collaboration, evaluating and reporting the effect of the operational work and making proposals on legislative measures. In the government decision, particular attention is paid to the so-called alcohol buses that are organised trips to neighbouring countries when large amounts of alcohol are imported to Sweden and then sold illegally. In the project, an operational effort was made against the alcohol buses. The effort led to seizures of more than 40,000 litres of alcohol and more than 50 preliminary investigations that were begun. The final report on the assignment will be presented in October Tax evasion In spring 2016, information came forth from a consortium of journalists from different countries that a number of Swedish natural persons and legal entities used services in Panama for what could be assumed to be improper tax arrangements. A large amount of information, in the so-called Panama Papers, was published in the media. This information has since been reviewed and is still being reviewed by the intelligence operations at the Swedish Economic Crime Authority s police operations unit in Stockholm, the Swedish Tax Agency, the Financial Intelligence 20

23 Unit and the Swedish Financial Supervisory Authority. In addition, the Swedish Economic Crime Authority, the Swedish Tax Agency and the Swedish Financial Supervisory Authority have collaborated at a strategic level to coordinate the respective agency s work on the Panama information. Due to on-going reviews, the Swedish Economic Crime Authority received reports of crime from the Swedish Tax Agency and in 2017 will probably receive additional crime reports linked to the Panama Papers. Other Swedish and foreign authorities and other bodies may provide Panama-related information to the Swedish Economic Crime Authority. In order to handle these kinds of cases in the best way with a high level of quality, the authority has appointed a national coordinator of the Panama cases and decided to build up a centre of expertise and concentrate the handling of such cases to the Swedish Economic Crime Authority in Gothenburg. Money laundering and financing of terrorism The Act on Penalties for Money Laundering Offences, which entered into effect in 2014, gave the authorities new conditions to work against money laundering, including it being clarified that the prosecutor does not need to prove a concrete prior crime for money laundering offences, in other words the crime the assets originate from, and the introduction of a new crime, business money laundering. Business money laundering means that it may be criminal in business activities to participate in action with the purpose of laundering money. The new legislation also provided better conditions for securing criminal proceeds through money seizures, among other measures. The Swedish Economic Crime Authority has used these possibilities and has thereby become more effective at preventing and combating money laundering. The year was extensively affected by preparations of and work with the Financial Action Task Force (FATF) money laundering evaluation of Sweden. FATF is an inter-governmental body that combats money laundering, financing of terrorism and financing of the spread of weapons of mass destruction. FATF visited Sweden in May June 2016 and extensive work was done both before and after the evaluation. The work has entailed extensive authority collaboration with the Prosecution Authority, the Swedish Tax Agency, the Financial Intelligence Unit and the Swedish Financial Supervisory Authority, among others. This has generally increased the authority s knowledge of money laundering and of the different conditions of collaborating agencies to prevent and combat money laundering. In addition, joint seminars and workshops were held together with other authorities, which provided results in the form of more reports and more effective investigations. International collaboration was also conducted. Another example of agency collaboration is the project begun in 2015 with the Financial Intelligence Unit and the Swedish Tax Agency with the aim of improving the joint intelligence gathering work to combat economic crime and money laundering. This collaboration continued during the year and has entered an operational phase. Another example is that the Swedish Economic Crime Authority together with the Swedish Financial Supervisory Authority presented typologies for various ways of laundering money through set-ups with false invoices, a method that conceals large criminal proceeds in the financial system. The aim has in part been that the business operators (such as banks) should more easily be able to identify suspected money laundering. Ú The authority s prosecutors decided in the issue of preliminary investigations and prosecution for a total of 440 suspected offences related to the Act on Penalties for Money Laundering Offences (2014:307). This is a sharp increase over the previous year. The number of charges and asset-oriented actions also increased considerably. It is important to be aware that prosecution for other crime, such as gross tax evasion and gross bookkeeping crime, can also include qualified money laundering proceedings (and sometimes suspected terrorism financing). Special information on the handling of money laundering and financing of terrorism Reporting requirement as per the public service agreement 2016: The Swedish Economic Crime Authority shall, insofar as concerns the Act on Criminal Responsibility for the Financing of Particularly Serious Crime in some cases (2002:444) and the Act on Penalties for Money Laundering Offences (2014:307), report information on the: number of suspects prosecuted, number of decisions in the issue of prosecution divided into decisions whereby charges were filed, refusal of prosecution was announced, order of summary punishment was issued, charges were not filed because crime could not be proven and charges were not filed for other reasons, number of decisions to not begin a preliminary investigation and decisions to discontinue a preliminary investigation, number of incoming and outgoing requests for international criminal law collaboration, number of decisions on money seizures, seizures, custody, sequestration and forfeiture in such cases and the number of cases of a prohibition to use divided by established and rescinded decisions. 21

24 During the year, a total of 24 people were prosecuted at the Swedish Economic Crime Authority for violations of the Act on Penalties for Money Laundering Offences (2014:307), of whom 12 were charged with gross money laundering. Two people were charged for business money laundering. Table 1. Number of suspects prosecuted in accordance with the Act on Penalties for Money Laundering Offences (2014:307) Crime classification Handling illicit gains 18 Misdemeanour handling illicit gains 1 Money laundering Total The number of decided criminal suspicions under the Act on Penalties for Money Laundering Offences (2014:307) is increasing sharply. A preliminary investigation has begun on just over half of the suspicions. The number of criminal suspicions leading to charges increased to 33 in Table 2. Number of prosecution and dismissal decisions regarding criminal suspicions in accordance with the Act on Penalties for Money Laundering Offences (2014:307) Decisions Preliminary investigation not commenced Preliminary investigation discontinued Charges not filed, evidence problem Charges not filed, other reasons Order of summary punishment Refusal to prosecute Charged Total Table 3. The number of incoming and outgoing requests for international criminal law cooperation in concluded cases with suspicions under the Act on Penalties for Money Laundering Offences (2014:307). Number of requests in concluded cases Incoming Outgoing Total number of requests The number of decisions for seizures increased sharply in concluded cases with suspicions under the Act on Penalties for Money Laundering Offences (2014:307). Eight decisions for forfeiture were made in these cases. Table 4. The number of decisions for seizures, monetary seizures, custody, sequestration and forfeiture in concluded cases with suspicions under the Act on Penalties for Money Laundering Offences (2014:307) Number of requests in concluded cases Seizures Monetary seizures Custody Sequestration Forfeiture 8 Total number of decisions Among the cases concluded during the year, no prohibition of use occurred. The Swedish Economic Crime Authority does not handle security cases or cases of financing of terrorism. It still happens that the Swedish Economic Crime Authority receives information in its cases that may indicate financing of terrorism. At the same time, the Swedish Economic Crime Authority receives information on economic crime committed by individuals with suspected ties to terrorism. To ensure that the information is handled in the best possible way, the Swedish Economic Crime Authority has developed procedures for the handling and hand-over of such information and formalised the authority s contact channels with the Swedish Security Service. Through an educational effort with the help of the Swedish Security Service, the authority s employees have increased their knowledge of terrorism, the financing of terrorism and the new procedures. Financial market crime A well-functioning securities market presupposes that those who trade in the market have confidence in it. If trading is characterised by manipulation and insider trading, investors choose other markets. When the companies do not receive adequate access to capital, there is a risk that they have difficulty in developing. This in turn affects employment and tax revenues. Municipalities, institutions and households own savings, as well as pension savings, are also dependent on investors being able to rely on the market prices. In addition, it is presupposed that everyone trading in the market has access to the same information. The task of the Swedish Economic Crime Authority is to investigate and prosecute market abuse offences based on the EU s regulations together 22

25 with Swedish legislation. The aim is to improve the investor s protection and thereby protect the confidence in the financial market. The Swedish Economic Crime Authority s special financial market chamber mainly handles the offences of insider trading and improper market influence. Insider trading involves trading based on information that is not published and thereby not available to everyone. Improper market influence is comprised of one or more actors influencing prices or volumes for a financial instrument in various ways. Both types of crime are usually complicated to investigate and often require extensive investigative efforts and specialist expertise. International legal help must often be requested from crime fighting authorities in other countries. By specialising, building up expertise and constantly working to develop approaches around these kinds of cases, the Swedish Economic Crime Authority has streamlined the handling of financial market offences. During the year, collaboration with the actors in the financial market continued and was deepened. Due to new legislation in the market abuse area (entering into effect in 2017), the authority s collaboration with the Swedish Financial Supervisory Authority has been deepened and intensified. The authority has also initiated and carried out joint meetings with the Swedish Financial Supervisory Authority and the marketplaces with the aim of finding effect ways of countering market abuse. Collaborative meetings are also held at an operational level with the aim of streamlining and simplifying the communication between the authorities. Ú During the year, the financial market chamber prosecuted 36 people (33 people in 2015). Of them, 17 people were prosecuted for improper market influence and 18 for insider trading. One issue of principle significance was decided in the district court regarding serious improper market influence through misleading information over the Internet, the so-called blog case. 23

26 Asset-oriented crime fighting One of the Swedish Economic Crime Authority s focus areas is that we should increase our efforts to, ourselves or through other authorities, trace, secure and return profits and assets from criminal activities. The criminal proceeds work should be an integrated part in all of our operations. Within the authority, a network was established for criminal proceeds issues with contact prosecutors at each chamber, coordinated by specially appointed function managers. This way, the conditions for a uniform application of the law between cities and chambers have been improved. The network also contributes to greater quality by spreading good examples on criminal proceeds actions and serves as knowledge distribution. During the year, the authority began extensive work to revise the follow-up procedures of the criminal proceeds actions. The objective is to create a simpler and more reliable statistics follow-up. In addition, the authority has prepared central guidelines for company fines, which among other things provide guidance regarding the size of the company fine. Questions about international criminal proceeds are becoming increasingly current through the internationalisation of crime and moving of assets across borders. With the aim of increasing the conditions and incentives to secure criminally acquired assets abroad, a training effort in the field has begun. Government assignment on criminal proceeds in collaboration The Swedish Economic Crime Authority, the Prosecution Authority, the National Police Board, Swedish Customs, the Swedish Tax Agency and the Swedish Enforcement Authority were commissioned by the government in June 2013 to, as a part of the special effort against serious organised crime, develop and follow up the inter-agency collaboration that takes place in the criminal proceeds area. The Swedish Economic Crime Authority coordinates the government assignment. The agencies have established an inter-agency strategy for collaboration in criminal proceeds issues. The work processes at the authorities can be said to constitute parts of a criminal proceeds chain. The follow-up of the criminal proceeds work has been formulated in such a manner that it comprises every part of the criminal proceeds chain. Based on the strategy, the agencies have prepared an action plan for with activities to strengthen and develop the inter-agency criminal proceeds work. The Swedish Social Insurance Agency (Försäkringskassan) and the National Council for Crime Prevention also participated in the work of preparing the action plan. In addition, work continued on preparing a guide over legal tools in the criminal proceeds area, an inter-agency training programme and identification of development needs in the criminal proceeds area. Ú In 2016, the authority submitted motions concerning a total of SEK million in sequestration, forfeiture, company fines and damages. This is a slightly lower amount compared with 2015, but the amounts are entirely dependent on which cases the authority receives each year. The number of submitted motions amounts to 111 for 2016, compared with 210 for It should, however, be noted that the previous year s number included an extreme value. Since 2015, the Swedish Economic Crime Authority also registers information about when the authority s efforts contributed to other authorities being able to secure assets. Ú The returned assets through the authority s collective collaborative efforts amounted to a value of around SEK 64 million in For 2016, this amount was also SEK 64 million. Detailed statistics over requested and granted motions, respectively, in are presented in the Table reporting section, tables International work A large part of the cases handled at the Swedish Economic Crime Authority today, both in the serious and the more everyday economic crime, have an international connection. Therefore, it is a necessary prerequisite that there be a well-functioning international cooperation with regard to legal information exchange and operational collaboration. To meet the operations needs, the authority therefore participates in a number of legal networks and organisations. For a few years, the authority has placed a representative at Eurojust, the EU Member States judicial cooperation organisation for serious cross-border crime. This creates good conditions to get legal help in the operational cases and to monitor the development outside Sweden s borders. In addition, there is now a well-developed organisation within the authority with a number of international contact prosecutors in the operational activities. They function as a support in international issues at the chambers. The initiative for a strengthened organisation has resulted in simplified processes and greater involvement in international issues at the authority. In addition, the authority drafted a strategy for the international work during the year. The authority actively participates in CARIN, ARO, EJN and ALEFA For several years, the Swedish Economic Crime Authority has worked to strengthen the work on criminal proceeds internationally as well. Camden Asset Recovery Inter- Agency Network, CARIN, is one of the more established 24

27 international criminal proceeds networks with nearly 60 affiliated jurisdictions and several international organisations, including Eurojust, Europol and Interpol. Through CARIN, the members can send and respond to inquiries regarding assets and company circumstances in virtually the entire world. Sweden has two contact points, of which one is from the Swedish Economic Crime Authority and one from the Police Authority. To strengthen the international cooperation regarding criminal proceeds within the EU, all Member States have established functions for criminal proceeds issues, Asset Recovery Offices (ARO). In Sweden, ARO consist of two contact points from the Swedish Economic Crime Authority and the Financial Intelligence Unit, respectively. ARO are national units that exchange information with each other to reduce the possibilities of handling, laundering and investing illicit gains within the EU. Swedish authorities inquiries are made through the Swedish contact points, which are also recipients of inquiries from other countries contact points. Within the networks, more informal contacts can also be made in operational issues. The Swedish Economic Crime Authority also participates in ARO on a strategic level and participates in two annual so-called ARO platform meetings and at the meetings in the subgroup formed to exchange best practices on virtual currencies. Inquiries to CARIN and ARO often provide guidance to be able to decide whether an international request for judicial assistance should be made. During the year, the authority received 57 petitions for international judicial assistance from other countries. The authority itself sent out 73 petitions for international judicial assistance. In addition, the authority received six inquiries from ARO. The authority has itself sent 22 ARO inquiries. As a part of the greater international involvement, Sweden is elected to CARIN s Steering Group, which means a deeper operational cooperation in the network. Every year, CARIN holds an annual meeting that aims to maintain and deepen the collaboration and information exchange within the network. One aim of the meeting is to exchange experiences and develop the international criminal proceeds work. In 2017, Sweden will chair the network and arrange the annual meeting among other things. The preparations for the chairmanship have begun in close cooperation with the Police Authority and the secretariat for CARIN. In addition to ARO and CARIN, the authority was active in the European Judicial Network (EJN), which 25

28 is a network of contact persons (mainly prosecutors and preliminary investigation judges) within the EU that have the task of facilitating criminal law cooperation between the EU s member countries. The network is particularly important for the application of the principle of direct contacts between competent judicial authorities. The Swedish Economic Crime Authority has two contact points that participated in multiple national meetings and a regional international EJN meeting where practical issues of international judicial cooperation regarding complex economic crime were discussed. Lastly, the authority also increased its involvement in the Association of Law Enforcement Forensic Accountants (ALEFA). It is an informal network of auditors in crime fighting agencies in Europe that work to increase the members effectiveness in investigating economic crime. The authority is now one of three Swedish contact points in ALEFA and has a representative in the steering group. The Swedish Economic Crime Authority receives a large return from its involvement in ALEFA and has assimilated much of the experience and knowledge that is in other Member States regarding the forensic accountant s contributions to more effective investigations. This has led Sweden to also become the chair for ALEFA in 2017 and began the preparations for the chairmanship during the year. International aid and international peace promotion activities The Swedish Economic Crime Authority shall contribute to international aid and international peace promotion activities according to a government decision. As a part of contributing to international aid, the authority has arranged and participated in multiple efforts with the aim of spreading knowledge about the authority s construction and way of working, and how economic crime is fought in Sweden. In addition to the actual knowledge transfer, participation also aims to strengthen relations between Sweden and other countries. The authority has, for example, been host to a Belarus visit in the scope of the EU assistance instrument Twinning and Technical Assistance Information Exchange (TAIEX), which has the aim of supporting institution development in candidate countries, potential candidate countries and neighbouring countries to the EU, and strengthening relationships between authorities in member and recipient countries. In addition, the authority participated in a workshop regarding money laundering in Moldavia within the framework of TAIEX. The workshop was a part of developing Moldavia s ability to investigate economic crime in general. The authority also participated in a seminar in Ukraine, arranged by the Ukrainian State Security Service and presented how Sweden organised the crime fighting against money laundering, with special focus on cash management. The authority also assisted the Police Authority in a cooperation project with Moldavia regarding local police activities, police conflict management and combating financial crime. The Swedish Economic Crime Authority active within the EU Policy Cycle The Swedish Economic Crime Authority has, together with the Police Authority, Swedish Customs and the Swedish Tax Agency, continued to be active in the operational collaboration in the EU for fighting serious and organised crime in various high priority areas. In 2016, the authority was a member of the prioritisation in the EU policy cycle related to intra-community fraud through phantom companies (so-called VAT carousels). This means that the authority committed to monitor certain proposed measures, such as increasing awareness of this kind of crime, organising training, gathering and spreading best practice in the area, identifying common objectives, building networks, improving the recovery of criminal proceeds and identifying additional cooperative partners. This commitment means a close collaboration with the Swedish Tax Agency, which is a collaborative partner in this effort. In addition, Swedish Customs assists in the work in relation to the EU s prioritisation regarding excise duty fraud. The Swedish Economic Crime Authority s coordination centre towards OLAF The authority is the coordination centre, the Anti-Fraud Coordination Service (AFCOS), towards the European Anti-Fraud Office (OLAF), which is the responsible for conducting administrative investigations in the event of improprieties that affect the EU s economic interests. The authority s assignment as the AFCOS pertains mainly to participating in the implementation of OLAF's checks and inspections on site in operational cases. During the year, the authority participated in three requests for assistance in operational cases and represented Sweden at a number of meetings in Brussels. The authority has also continuously assisted OLAF with information and documentation, in part regarding response to various questionnaires. 26

29 Performance areas Crime prevention process In 2016, the government announced an extensive effort to strengthen the crime prevention work; among other things, a national crime prevention programme will be developed and a national coordinator will be appointed. One challenge in the crime prevention work is that the actors that have a possibility of influencing crime often lack adequate knowledge. The government therefore places major importance in building up knowledge in the crime prevention work and improved capacity for collaboration. The Swedish Economic Crime Authority works in a number of different ways to prevent economic crime. The majority of the crime prevention work takes place in collaboration with other authorities, as well as together with actors outside the judicial system, such as trade associations and companies. One of the key formulations in the crime prevention strategy that the Swedish Economic Crime Authority works according to is that the crime prevention work should be marked by collaboration. Legislation is an important tool in the prevention activities A recurring conclusion in the status report (see the section About the Swedish Economic Crime Authority in the previous chapter) is that the majority of the perpetrators who plan and carry out advanced economic crime arrangements have good knowledge of legislation and regulations. Following and analysing the application of the law and in our exposure draft comments pointing out possible undesired consequences or gaps in the legislation are therefore an important part of the Swedish Economic Crime Authority s crime prevention work. We also collaborate with other authorities and societal actors to identify improvement proposals in the legislation and increase the understanding in the parliament and government for undesired consequences of various laws. In 2016, several decisions were made on new legislation in areas where the Swedish Economic Crime Authority in collaboration with others actively worked to address the need. Perhaps the foremost example is the government s decision to introduce a monthly fee at an individual level, an issue that the collaborative forum the Large Industry Group under the leadership of the Swedish Tax Agency has pushed for several years. Another example concerns the changes in legislation to facilitate information exchange between authorities intelligence activities in the work against organised crime. Right body against the right target group In the formulation of the crime prevention efforts, knowledge-based considerations are required. This is a matter of assessing how well a certain measure can conceivably affect the problems and following up the work afterwards to check the results. Being able to make such advance assessments and follow-ups requires an analysis of the causes of the problem, i.e. that the work is knowledge based. That the crime prevention work shall become more knowledge-based and be continuously followed up and evaluated is also a central objective in the government s direction of the crime prevention work. Ú In 2016, the Swedish Economic Crime Authority took several steps towards more knowledge-based crime prevention work. An example is that the authority conducted test activities on a methodology for recycling knowledge from the 27

30 authority s preliminary investigations, known as Twin Track. The methodology means that preliminary investigations are used in two tracks. One track aims to tie the perpetrator to the crime and the other track means that crime prevention conclusions are drawn from the same investigation. In purely practical terms, the method is based on the investigator in charge completing a questionnaire with a number of questions after a concluded investigation. Thereby, even discontinued preliminary investigations also contribute to building valuable knowledge. The pilot project indicates that the method can generate valuable information at a relatively low cost. The National Council for Crime Prevention also assesses that the method has a high preventive effect by providing good knowledge about crime and extensive opportunities to prevent crime through strategic measures. Another part of the work towards more knowledge-based crime prevention work is that the Swedish Economic Crime Authority in 2016 developed a platform that all crime prevention work should be based on. The platform is based on criminological research and police research and provides support in assessments of what the right kind of crime prevention effort is, who the right target groups are and how the effect can be followed up. Early interventions are a success factor To achieve crime prevention effects in the work directed at special groups, early involvement is important. During the year, the Swedish Economic Crime Authority initiated collaboration in several locations already when extensive building projects are planned, such as large infrastructure investments. The objective is to prevent unreported employment through better procurement of subcontractors. In an early dialogue with municipalities or large companies, the Swedish Economic Crime Authority can constitute a concrete support by sharing knowledge of the methods and risk indicators. Knowledge formation directed at especially prioritised groups also takes place continuously through educational days and seminars on various topics. In 2016, seminars were arranged on money laundering directed at bank representatives at several locations in Sweden. In addition, the Swedish Economic Crime Authority conducted training efforts at several other authorities, including the Public Employment Service and the Swedish Migration Agency. The common factor in these targeted efforts is the aim to increase the participants ability to discover and prevent suspected economic crime early on. The Swedish Tax Agency and the Swedish Companies Registration Office are key actors in preventing companies from being used as tools for crime. With the aim of increasing the capacity for early efforts, the Swedish Economic Crime Authority and the Swedish Tax Agency s creditor function conducted a joint study as to whether earlier identification is possible of potential or likely companies where crime can occur in a bankruptcy. The study shows that the Swedish Tax Agency had been in contact with a majority of the companies half a year before the bankruptcy. This knowledge is important to be able to find business operators earlier on who are in need of more information and support. The collaboration between the Swedish Economic Crime Authority and the Swedish Companies Registration Office was also strengthened during the year. An identified category of crime for the collaboration is the relatively simple economic crime committed by previously unpunished small business operators. It often involves bookkeeping offences or violations of the prohibition against loans to related parties. Ú In 2016, the authority conducted an in-depth analysis of previously unpunished small business operators who commit economic crime. The analysis shows that many of the crimes are due to ignorance, carelessness, illness or declining profitability. The report will form the basis of knowledge-based crime prevention work in the next few years. At several of the Swedish Economic Crime Authority s locations, pilot operations are under way with crime prevention contacts and support efforts directed at individuals identified as frequently recurring fronts. This is also a group of perpetrators who will continue to be prioritised in the crime prevention work in the next few years. Extensive interest in the authority s operations One of the largest general prevention efforts in 2016 was the Swedish Economic Crime Authority s participation in the political events week at Almedalen, comprising a major effort by the crime prevention operations. The authority arranged a well-visited day with three seminars on economic crime, Bitcoin and financial market crime. Ú Another information channel that the Swedish Economic Crime Authority established in 2016 is a special newsletter on crime prevention activities. The newsletter is primarily directed at other authorities, journalists and organisations and takes up legislative changes, analyses and other new information that is relevant to preventing economic crime. Below is a presentation of the estimated cost of the authority s crime prevention process. The cost 2 is estimated using the time reports done by the authority s staff in the month of September every year. The cost includes estimated overhead costs, i.e. the process share of the authority-wide costs for central administration, premises, IT, etc. 2 In the Annual Report 2014, the cost was based on a distribution of salary costs, while in Annual Report 2015 and on, it is based on the distribution of working hours. The 2014 results were revised according to the new calculation principle for comparability with later years results. 28

31 Table 5. Crime prevention process cost Year Cost (SEK million) The operation s revenues can be divided into performance areas according to the same principle as the costs. However, this is not reported separately since the revenues almost entirely consist of appropriation funding. The Financial Intelligence Unit for exchange of financial information. Swedish Customs for exchange of information mainly regarding excise duty crime. The tax evasion units for the exchange of tax information that contributes to the commencement of preliminary investigations in the Swedish Economic Crime Authority or of audits in the Swedish Tax Agency. Intelligence process The focus of the intelligence service is to work against organised crime and serious economic crime, such as excise duty offences, money laundering and regional phenomena and occurrences that cause significant regional harm. The work against organised crime mainly takes place in regional and national intelligence centres together with other authorities. The authority conducts targeted efforts against serious economic crime. In this work, the authority prioritises principals and the strategists, experts, service functions and others who contribute to and benefit from advanced economic crime arrangements. Here, money laundering is an important method that is fought. The work is done regionally and nationally. In 2016, collaboration was developed with the Financial Intelligence Unit and the Swedish Tax Agency s tax evasion unit and formalised at a national level. This authority collaboration on serious economic crime has worked well and been successful. The intelligence service and investigative activities shall be clearly separated to ensure compliance with secrecy legislation. During the year, work was done to clarify this interface and to ensure that it was established in procedures. This also applies to surpluses from preliminary investigations, which can be fed back to the intelligence activities in a structured and legally secure way. One of the most important sources of the intelligence information is the collaboration and exchange of information. By sharing information between authorities, better opportunities are created to act against economic criminals through reports or administrative action. The intelligence operations cooperate in multiple forums of which the Police Authority s regional and national intelligence centres are the foremost ones. Within the scope of this cooperation, the Swedish Economic Crime Authority was involved in a very large number of efforts decided by the Operational Council. In addition to this, bilateral collaboration takes place in multiple areas, such as: 3 In the Annual Report 2014, the cost was based on a distribution of salary costs, while in Annual Report 2015 and on, it is based on the distribution of working hours. The 2014 results were revised according to the new calculation principle for comparability with later years results. The Police Authority is also an important collaborative party besides the cooperation with the Police Authority s regional and national intelligence centres. Collaboration with the Police Authority takes place nationally and regionally when it concerns method development and IT systems, but above all, a large regional information exchange takes place in terms of intelligence information on economic crime. The national status report on economic crime has the aim of constituting strategic decision documentation for how the authority should focus its activities in the upcoming year. A clear mission for the intelligence activities is to collect, process and analyse information to prepare reports in the decided directions. The cost and achievements of the intelligence process are presented below. The cost 3 is estimated using the time reports done by the authority s staff in the month of September every year. The cost includes estimated overhead costs, i.e. the process share of the authority-wide costs for central administration, premises, IT, etc. Achievements include reports, statements, compilations, prepared intelligence projects and registrations 4. The cost increased by nearly 5 per cent, at the same time that the number of achievements increased by 23 per cent. The average cost per achievement decreased by 15 per cent in Table 6. Cost and achievements intelligence process Year Cost (SEK million) Number of achievements 1,491 1, Cost per achievement (SEK 000s) The operation s revenues can be divided into performance areas according to the same principle as the costs. However, this is not reported separately since the revenues almost entirely consist of appropriation funding. 4 The definition applies as of In earlier annual reports, established intelligence projects were not included in the calculation of the number of achievements. In the table, 2014 s achievements were revised according to the 2015 definition for comparability. 29

32 The number of prosecuted individuals in especially demanding cases increased by 32 per cent In 2016, more than 5,800 cases were received by the authority 30

33 Investigation and prosecution process The largest part of the Swedish Economic Crime Authority s operations is conducted within the core process of investigation and prosecution. The objective of the process is that those who committed economic crime shall be prosecuted through an effective and legally secure process. The documentation for the results presented in this section are collected from the prosecution authorities statistical database Cåsa (Central system for prosecution authorities statistics and analysis), which in turn retrieves information from the record-keeping system Cåbra (Central system for prosecution authorities criminal case management). Registration of reports and suspicions of crime in Cåbra take place according to the directions of the National Council for Crime Prevention. A case is set up when there is at least one suspect who is tied to a suspicion of crime. The cases can pertain to multiple suspects and multiple suspected crimes. It can range from one person suspected of one crime, to multiple people who are tied to a large number of suspected crimes. The Swedish Economic Crime Authority divides the cases up into three categories, depending on the expected investigation time. Basically, it can be said that a case that requires a maximum of eight hours of investigation is categorised as a high-volume case. A case that requires more than eight hours, but less than 80 hours of investigation is defined as a project case. Cases that require more than 80 hours to investigate are classified as especially demanding. More than one in three preliminary investigations of suspected crime commenced by a prosecutor at the Swedish Economic Crime Authority is investigated by the Swedish Tax Agency s tax evasion units (SBE). The investigations from SBE generally maintain a high level of quality and SBE is an important investigative resource for the Swedish Economic Crime Authority. Received, concluded and balanced cases In 2016, more than 5,800 cases were received by the authority. This is a decrease by around 550 cases (or nearly 9 per cent) compared with 2015, and it is the influx of high-volume crimes that is decreasing 5. The reports regarding more serious economic crime are increasing, however. The number of received project cases increased compared with both 2015 and The increase accelerated towards the end of 2016 and one of the main factors behind this increase is the Swedish Tax Agency s effort with targeted audits that result in more reports than before. 5 In 2015, around 1,000 high-volume crime cases were received beyond the normal influx after a spot check in connection with the Swedish Companies Registration Office regarding delayed annual reports. The development of the volumes of the authority s especially demanding cases is best estimated by reviewing the number of concluded cases since relatively few of these cases can be categorised as especially demanding as early as the report. The number of concluded especially demanding cases decreased by 9 per cent in However, a number of indicators show that the investigations in these cases are increasing in scope and complexity at the same time. Among other things, the number of prosecuted individuals in especially demanding cases increased by 32 per cent in The work balance development is the same as the influx. The number of on-going high-volume and especially demanding cases decreased, at the same time that the number of on-going project cases increased. In total, the work balance decreased by around 100 cases. The court balance, i.e. the number of on-going cases in court, decreased significantly in all case categories in recent years. Given a retained high level of prosecutions, this is a positive development. Received and decided suspicions of crime The number of received suspicions of crime decreased somewhat compared with Suspicions concerning high-volume crime decreased, while the influx of suspicions concerning more serious economic crime (project and especially demanding cases) increased. Among other things, the influx of tax evasion, violations of the Swedish Companies Act, market abuse (improper market influence and insider crime) and violations of the Money Laundering Act increased. Like the influx, the number of decided suspicions of crime decreased somewhat compared with Here too, it is the high-volume crimes that account for the majority of the decrease, while the number of decided suspicions of crime in project cases (i.e. more serious crime) increased. Through-put times and balance age The through-put time in days from the received report to a decision was 205 days on average for all decided suspicions of crime at the authority in At the same time, the age of the work balance, i.e. the age of the suspicions of crime for which handling is under way, averaged 325 days. The age of the work balance and the through-put time are largely communicating vessels. The through-put time can decrease temporarily in that decisions are made to a greater extent on suspicions of crime that take a short time to administer, at the same time that more time-intensive cases are not decided. The latter then remain in the work balance without affecting the through-put time. The age of the work balance is therefore of equal interest to the through-put time. The age of the work balance has increased in recent years at the same time that the through-put times have been low. In 2016, the through-put times began to increase, however. This is 31

34 positive since it indicates that the share of administered older cases is increasing. The median values for throughput time and balance age are generally below the average values. This indicates that the average values are affected to a relatively large extent upwards by a smaller share of older cases. metropolitan regions, around one out of four criminal suspicions were prosecuted in 2016, where Linköping had a prosecution percentage of 27 per cent, and Umeå had 24 per cent. The differences in the through-put times also decreased. In 2016, four out of five AMGs had a through-put time in the span of days. Prosecution In 2016, prosecution decisions (charges, order of summary punishment or refusal to prosecute) were made for a total of 1,972 suspects, an increase of 51 people compared with Ú Above all, the number of prosecuted individuals increased in the cases that concern more serious economic crime (project and especially demanding cases). The percentage of persons prosecuted in total (21 per cent) is unchanged compared with 2015, but the percentage increased in the cases that concern more serious economic crime. The number and percentage of prosecuted suspicions of crime decreased in total. The statistics regarding prosecuted suspicions of crime should, however, be interpreted with caution as individual cases with a large number of suspicions of crime may affect the outcome to a very large extent 6. One explanation for the number of prosecuted suspicions of crime decreasing (at the same time that the number of prosecuted individuals increases) is that the number of preliminary investigation limits is increasing. By limiting and streamlining the preliminary investigation early on according to the Prosecutor-General s guidelines for preliminary investigation limitation, the prosecutor can limit the number of suspicions of crime that are investigated and ultimately lead to charges without negatively affecting the penal value or the number of people charged. Prosecution and through-put time per area management group The Swedish Economic Crime Authority has geographically divided the responsibility for the operational activities into five area management groups (AMG). In 2016, the spread between AMG 7, regarding prosecution and handling time, decreased. For the three metropolitan regions, the span in the percentage of prosecuted criminal suspicions was per cent in The corresponding span for 2015 was per cent. Outside the 6 An example of this is the prosecution of more than 9,000 suspected crimes in a single fraud case in The special financial market chamber, which organisationally belongs to AMG Stockholm, is not included in the comparison since its operations are nationwide. The financial market chamber had a prosecution rate of 12 per cent in 2016 and an average through-put time of 150 days. 8 In the Annual Report 2014, the cost was based on a distribution of salary costs, while in Annual Report 2015 and on, it is based on the distribution of working hours. The 2014 results were revised according to the new calculation principle for comparability with later years results. Achievements and costs, investigation and prosecution The cost and achievements for the investigation and prosecution process are presented below. The cost 8 is estimated using the time reports done by the authority s staff in the month of September every year. The cost includes estimated overhead costs, i.e. the process share of the authority-wide costs for central administration, premises, IT, etc. The authorities costs for the operational area of investigation and prosecution are estimated to have increased by around SEK 44 million in total in Virtually the entire cost increase is traced to the handling of the authority s especially demanding cases. The Swedish Economic Crime Authority prioritises the efforts against organised and serious economic crime and allocates increasing resources to this area, both internally and in cooperation with the rest of the judicial system. The operation s revenues can be divided into performance areas according to the same principle as the costs. However, this is not reported separately since the revenues almost entirely consist of appropriation funding. Table 7. Cost per area of achievement, investigation and prosecution process Operational area, investigation and prosecution Cost (SEK million) per achievement area Achievement area High-volume cases Project cases Especially demanding cases Total The cost per achievement for the investigation and prosecution process is presented below. The authority has chosen to use decided suspicions of crime as a measure of achievement for investigation and prosecution. The volume of decided suspicions of crime include the entire working materials, which in various stages and various ways, have been reviewed and assessed by the authority s specialist expertise during the year. 32

35 Table 8. Cost per achievement, investigation and prosecution process Operational area, investigation and prosecution Cost (SEK 000s) per achievement Achievement area High-volume cases Project cases Especially demanding cases Average all cases Detentions and restrictions Table 9 (below) presents the number of people detained in time intervals of 20 days, and the average number of days these people had restrictions. In total, 99 detentions were concluded in 2016, of which 90 with restrictions. The longest detention time was 380 days and the average for all detentions was 60 days. The longest time for restrictions was 173 days and the average was 48 days. No suspects aged were detained. Four people aged were detained. All of them were aged 20 at the time of detention. One of these people was detained with restrictions for 16 days, and the other three were detained with restrictions for 28 days. Table 9. Detentions and restrictions 2016 Number of days in detention Number of individuals detained Of which number of detained individuals with restrictions Average number of days with restrictions 1 20 days days days days days days days days days days days days days days days days days days days days > 400 days Total

36 Governance and support Internal governance and control Reporting requirement as per the public service agreement 2016: The Swedish Economic Crime Authority shall report which actions were taken to ensure an effective internal governance and control Process for internal governance and control The Swedish Economic Crime Authority has a broad process to ensure internal control and governance, i.e. to ensure that operational requirements according to the Government Agencies and Institutes Ordinance are met. The process mainly consists of risk analyses and employee-driven development work at various levels and operational follow-ups and inspections. The aim of the risk analyses is to identify and handle circumstances that may negatively impact the authority s possibilities to achieve its objectives within various areas. The authority s risk analysis and risk management work was simplified during the year by the work on legal risks and operational risks, respectively, being merged into a joint process. In the analysis work, observations and conclusions are taken into account from operational follow-ups, supervision, site visits. The simplification has led to a lower administrative burden and the authority's management has gained a more coherent view of the operations. The results are used, among other things, in the process of operational planning and prioritisation and in decisions on the focus of the supervision. Control of the financial activities was strengthened, in part through clarification of procedures and by an additional control stage being introduced in invoice management. The authority also conducted extensive work to prepare the authority for the introduction of a new accounting system with newly developed accounting processes and other efficiency enhancements. The system has been supplemented with automatic checks. Development work at the Swedish Economic Crime Authority is something that all employees are responsible for conducting based on their duties. In connection with the employee-driven development work, the employees ideas and experience should be leveraged and contribute to both everyday improvements and larger development projects. To ensure that location-wide development issues are coordinated, the authority has a model for development activities that captures development needs. Specially appointed employees have a so-called functional responsibility in certain strategic subjects. Responsibility for certain development issues has been delegated from the operational manager to the chamber manager and from the police commissioner to the chamber commissioner. The work is conducted by one or two appointed functional managers with an associated network of employees. Development needs that cannot or should not be met within the function are escalated to the next level in the organisation. The model with functional responsibility was introduced in January 2016 and was preceded by a test period. Many of the major development projects of national interest are driven in accordance with the authority s operational plan. The projects there reflect the authority s development needs, which among other things were discussed at the authority-wide expertise days and in management forums, and were able to illustrate the development needs based on various perspectives, professional groups and competencies through workshops. Swedish Economic Crime Authority s construction clarified The Swedish Economic Crime Authority is a prosecution authority with its own police investigation resources. More than 200 police officers are permanently placed and active at the authority and employed by the Police Authority. This entails both challenges and opportunities. Clarifying conditions of responsibility and boundaries between different operations guarantees an effective and legally secure handling of information in the operational activities. The consequences of the construction for governance and management of the operations and various responsibility relationships have therefore been clarified. A report has been established and a new structure for delegations has been prepared. The work has formed the basis for a new guideline for the systematic work environment efforts and for the division of work environment responsibility. Improved information and document management In the authority s large cases, the amounts of information are often very extensive. An important aspect of legal security is therefore that there is a good and uniform structure for how investigation information is handled. In 2016, very extensive development work took place regarding the authority s information management. Within the scope of the so-called Information Management Programme, a new uniform standard and structure for file handling in operational cases was prepared and implemented. The structure contributes to aligned working methods, greater traceability and good control over the investigation information. Besides greater legal security, an aspect of the work is also greater information security. As a part of securing uniform and legally secure working methods, the authority has also conducted a pilot operation to align the documentation and records keeping in operational cases. Previously, documentation and 34

37 record keeping mainly took place in the case management system Cåbra, which entailed problems with clarity in the cases. Various ways have been used for documentation in the cases. In 2016, a pilot project was conducted for the authority s document management. This means an aligned way of documenting and keeping records in operational cases in Cåbra and DurTvå, which has led to a more uniform and legally secure document management and that the cases can easily be continuously monitored. In addition, this way of working entails a uniform process for completing preliminary investigation reports and presenting side materials. The pilot project has now been made permanent and new manuals for documentation and record keeping have been adopted. In 2015, the National Archives conducted an inspection of the authority s archive care. In light of this, a transition of the authority s archive reporting was done during the year. Among other things, a new classification structure was developed, which formed the basis for both the standard and the structure for file management in operational cases outside Cåbra and DurTvå and for the deployment of the prosecution authorities new administrative record keeping system, Cårall. The authority has also otherwise, as a part of improving order, taken steps for updated and current archive reporting. Rights development and legal governance Some of the steps of a legal nature taken during the year for the purpose of improving quality and efficiency in the operations and increasing uniformity in the application of the law are presented below. This section also presents how experiences are utilised and spread within the authority. In the legal area, the matter of large economic crime cases was addressed in several ways. Pilot activities with a panel of prosecutors continued, the role of the prosecutor has been discussed in an extensive round of seminars with all prosecutors, growing numbers of cases were strengthened with more than one prosecutor and a project regarding flow efficiency was begun. A part of securing uniform and legally secure working methods is the aforementioned pilot operation to align the documentation and records keeping in operational cases. During the year, a legal analysis was done of the bookkeeping offence primary prerequisite, which will result in a guide and a method support in the upcoming year. Lastly, the authority continued to develop the raid and interrogation processes, conducted interrogation training and further strengthened the operations with secret forcible means by updating guidelines and procedures for the forcible means process. To provide support and further align the work of the forensic accountants, the authorities began the preparation of an electronic method support for forensic accountants. This relates to various kinds of investigation situations in the event of suspicion of bookkeeping crime and templates to facilitate and ensure the quality of the investigation and reporting. To ensure that the forensic accountants work is reported in a uniform manner, templates were also developed for the forensic accountants memorandums. This is of central importance as they are often used as evidence in court. In addition, the so-called high-volume handbook, which provides guidance for handling simpler cases, was revised. The handbook has been updated with references to guidelines and guides that were prepared in central respects, such as the right to postpone bookkeeping, demarcation of minor bookkeeping crime and service of orders of summary punishment from a distance. Reporting requirement as per the public service agreement 2016: Measures to improve quality and efficiency. The Swedish Economic Crime Authority shall report the steps taken to improve quality and efficiency in the operations. This report shall present which steps the authority took to increase uniformity per area management group as regards application of the law. In this context, the Swedish Economic Crime Authority shall describe how the authority works to utilise and spread experiences with the aim of developing the operations at an operational level. Measures to improve quality and efficiency Utilise and spread experiences The Swedish Economic Crime Authority continued to develop channels for information and experiential exchanges, such as forums, networks and development groups. The authority s most central forum is Ekonytt, where all employees are invited to a video conference once a month. The objective is to spread relevant news, methods and experiences. During the year, another forum was established, Case video. Employees identify all or part of cases that contain methods and experiences that others in the authority can benefit from. The cases are presented and discussed by video conferencing broadcast to the entire authority. Analyses of legal development and application of the law The Swedish Economic Crime Authority shall according to its instructions monitor and analyse the development and application of the law in terms of economic crime and draft proposed measures. Some of the larger measures of a legal nature undertaken during the year are presented below. The measures relate to investigations, guides and proposals on new legislation. 35

38 Analysis of abolishment of the auditing obligation In June 2016, the Swedish Economic Crime Authority released the report Effects on economic crime after the abolishment of the auditing obligation for small limited liability companies. One conclusion in the report was that the abolishment of the auditing obligation is a risk factor that limited companies are used as tools for crime. See more about measures under Strategic collaboration. Guides were prepared With the aim of giving prosecutors support for a legally secure and uniform application, reports and guides are continuously prepared for current judicial issues (ARF). To give the prosecutors support for a uniform application of company fines, a report was prepared with a compilation of rulings regarding company fines. The authority has also developed procedures for orders of summary punishment with the sanction of suspended sentence. To provide guidance in new legislation, four products were developed. Due to the new legislation in the double jeopardy area in tax legislation, ARF 2016:1 Same misstatement or passivity, and ARF 2016:2 An expanded examination of the right to prosecute in the Tax Penal Act were prepared. With the aim of making it easier for the smallest companies, legislative changes were previously implemented that mean that small companies have been given the possibility to postpone the time of bookkeeping. The legislative change and the guide from the Swedish Accounting Standards Board entailed an interpretation problem. The Swedish Economic Crime Authority called this to the attention of the Swedish Accounting Standards Board, which resulted in a changed and clarified guide from the Board. This was followed by the publication of ARF 2016:3 Postponing the time of bookkeeping and the relation to suspicion of bookkeeping violations. In addition to this, a guide was prepared for the interpretation of the new legislation on temporary custody of electronic communication equipment upon interrogation, ARF 2016:6. Lastly, the authority to some respects has lacked guidance and uniform methods for collecting bookkeeping material that does not exist physically, but is stored in a software provider s server solution. This resulted in ARF 2016:5 Searches in the cloud. AFR 2014:6 Branch offices and the bookkeeping obligation, etc. was also revised after a ruling in the Swedish Supreme Court. Implementation of new legislation linked to the double jeopardy ban The double jeopardy ban has been a matter of current interest for quite some time. Since the Supreme Court s rulings and judgements as of 2013, the authority has actively worked with re-trial cases and unofficially sought to contribute to develop proposals on new legislation in the tax area. The new legislation entered into effect on 1 January 2016 and is applied to misstatements or passivity that occurred after 31 December Active work has been conducted to prepare the authority for the new legislation. Among other things, a new system support was developed in 2015 to send information between the Swedish Economic Crime Authority and the Swedish Tax Agency. Improvement steps were taken in 2016 and procedure descriptions, etc. were developed, as well as guides for what is subject tot he process ( same misstatement or passivity ) and for the application of the rule on the examination of the right to prosecute. An extensive training initiative was carried out in collaboration with the Swedish Tax Agency. In in total, 200 employees from the Swedish Economic Crime Authority and 125 from the Swedish Tax Agency participated in the training. For more information on economic reporting regarding the efforts, see Financial Statements. Preparations for new legislation in the market abuse area New legislation in the market abuse area entered into effect in February The legislation means that some offences are decriminalised and that the Swedish Financial Supervisory Authority is given the task of investigating certain offences where there is no malicious intent and is given expanded administrative sanctions. Prosecutors gain the possibility to request an alternative motion concerning administrative sanctions and also gain more opportunities to request assistance from the Swedish Financial Supervisory Authority. The authority has taken preparatory steps, both together with the Swedish Financial Supervisory Authority and internal considerations regarding methods, procedures, etc. A special implementation group with representatives from the authorities, both from operational activities and from a strategic level, were established to prepare the authorities for the new legislation. The Swedish Economic Crime Authority s work had led to proposals on new legislation in the branch office law area For several years, the Swedish Economic Crime Authority has worked to increase prosecutions for offences commit- 36

39 ted in branch offices in Sweden. A central issue has been whether branch offices are covered by the bookkeeping obligation and if it is possible to prosecute for bookkeeping offences. In 2014, a guide was prepared for the interpretation of the legislation and a number of cases were pursued with the aim of establishing fixed practice in the area. One case was appealed to the Supreme Court at the beginning of 2016 and the Court confirmed it its judgement in May 2016 that branch offices are in themselves subject to the bookkeeping obligation for the operations conducted in Sweden, but that it is not possible to prosecute for bookkeeping violations. The judgement led to the Swedish Economic Crime Authority immediately filing a request for a legislative change with the Ministry of Justice. A proposal was submitted for clarifying legislation after the summer and the proposal was circulated for comment in the autumn. The work with electronic account statements continues Financial information from banks is often a prerequisite for conducting a criminal investigation. The Swedish Economic Crime Authority cooperates with the Police Authority to develop and streamline the collection of such information from Sweden s major banks. The objective is a common apparatus of terms and a more systematic and automated information exchange with the banks. During the year, the first stage of a common apparatus of terms was completed and a pilot project was carried out. The objective is to ensure legislation that provides conditions for a more legally secure and efficient collection. The Swedish Economic Crime Authority submitted, together with the Police Authority, the Swedish Security Service, Swedish Customs and the Prosecution Authority, a request for a legislative change to bring about a clarification of the legislation that mainly means that a promptness requirement is directed at the banks and that the regulations are supported by modern technology. Review begun of the authority s personal data management The Police Data Act was updated in connection with the transition to one police authority on 1 January 2015 and the Prosecution Data Act entered into effect on 1 January The Swedish Economic Crime Authority s construction places special requirements on the clarification of responsibility relationships and an analysis of the register legislation and application area as well as the personal data responsibility was done in A review has begun with the aim of preparing in 2017 a clearer structure for the personal data representative s area of responsibility and supervision, and for the authority s information on the intranet and training activities in the area. Insofar as possible, the changes implemented through the new data protection ordinance and data protection directive in 2018 shall be taken into account. Supervision and reconsideration With the aim of achieving proper and uniform application of the law, the authority exercises supervision over its own operations. At the Swedish Economic Crime Authority, the prosecution director and vice directors are responsible for the legal supervision, reconsiderations and complaint cases. Supervision takes place in part through judicial inspection of individual cases and in part through systematic supervision. Systematic supervision refers to inspection projects planned in advance. The overall objective for the judicial inspection is that the cases are handled in a legally secure, uniform and efficient manner. The supervision activities take place in collaboration with the Prosecution Authority. The systematic supervision is based on a legal risk analysis that forms the basis for the selection of inspection projects, as well as other measures such as projects in the operational plan, method development projects and training initiatives. The supervision takes place primarily in the form of an annually running supervision where certain central judicial areas are examined. The inspection of cases led to several supervision cases being initiated. The application of the rules regarding preliminary investigation limitation was also followed up in a report. An inspection project on the interface between intelligence activities and preliminary investigation was concluded and steps that need to be taken have been identified. Most of the steps have been addressed as large projects in the authority s operational plan. A follow-up was done of an earlier inspection project regarding the quality of the authority s forensic accountant audits. It was confirmed that several of the objectives had been achieved, but that there were areas for improvement in some respects. On the basis of the supervision, a method support for the forensic accounts began to be prepared. During the year, 23 inspection cases occurred regarding a questioning of the prosecutor s handling. This is a decrease compared with the previous year when unusually many such cases occurred, nearly 30. Of the cases, six were initiated by the prosecution director s supervision activities on the basis of what came forth in the year s systematic supervision. These cases concern deficiencies in the application of a prohibition to conduct business and slow handling. As a part of the supervision, judgement reviews are done every year, mainly with the aim of monitoring the uniformity of the application of the law. In 2016, the review concerned rejected charges, court of appeals rulings where prison sentences of two years or more were handed down and motions of accomplice culpability and culpability as the actual representative. Judgement reviews have, among other things, been input in the 37

40 revision of the authority s guides ARF 2016:4 Bookkeeping crime in delayed or non-reported annual reports in limited companies and ARF 2016:7 Bookkeeping crime and orders of summary punishment. In addition to the supervision, individual prosecutor decisions are also reviewed through reconsideration. A prosecutor s decision may be reconsidered after an application by a party or other interested entity in the matter. During the year, 32 consideration cases occurred regarding prosecutor decisions from the Swedish Economic Crime Authority s various operating locations. This is also a decrease compared with 2015 when the number was 35 cases. The reconsiderations led to one (1) change in the prosecutor decision. A complain or request for reconsideration can contain assertions that the public servant committed a crime. If this occurs or for some other reason, there is reason assume that a crime has been committed, notification of this shall be sent to the Prosecution Authority s special prosecutor chamber. During the year, one (1) case was sent there for such a reason. Strategic collaboration Judicial collaboration There has long been an established collaboration at a judicial level between the Swedish Economic Crime Authority and the Prosecution Authority. To expand this collaboration, the authority initiated deeper judicial authority collaboration with a number of other, mainly crime fighting, authorities in This collaboration aims, among other things, to improve information exchange, make use of experiences from others and collaborate in exposure draft and legislative issues. An established collaboration now also exists with the Police Authority, the Swedish Tax Agency and Swedish Customs. During the year, collaboration has also been established with the Swedish Security Service and its personal data representative. Among other things, this has resulted in a firmer collaboration prior to upcoming changes in the data protection legislation and in the agencies sharing information on development activities that can form a basis for their own initiatives. Collaboration with the Prosecution Authority During the year, a cooperation agreement was reached that gives district prosecutors at the respective authority the possibility of job rotation for six months at the other authority. Collaboration at the regional and local levels has been developed in various ways in different parts of the country based on what the needs look like locally. To further increase this collaboration in the respective geographic area, managers in charge in the authorities had the task of discussing with each other what might possibly be developed and in this work to consider situations where collaboration, both operational and administrative, could benefit the assignments of the respective authority. The assignment will be followed up so that good examples and development opportunities can be spread. The judicial cooperation with the Prosecution Authority is central to ensuring uniformity in the application of the law and that the authorities follow common prioritisations, regarding among other things development issues. In 2016, a special collaboration was established with the Prosecution Authority to discuss issues related to the Swedish Economic Crime Authority s construction. In addition, the establishment of an IT unit and a completed analysis of the Swedish Economic Crime Authority s current and future needs for IT support entailed an in-depth collaboration regarding IT support and the future IT development. Collaboration with the Tax Evasion Units and the Swedish Tax Agency The collaboration with the Tax Evasion Unit at the Swedish Tax Agency that investigates tax crime is central and a key to ensuring the effective fighting of economic crime. Issues addressed concerned streamlining the transfer of information between the authorities and how to both increase the number of reports of crime and their quality. To ensure the quality of the Swedish Tax Agency s reports of crime, a representative from the Swedish Economic Crime Authority participates in the Swedish Tax Agency s regional coordination meetings. An action plan has been prepared, in part for how the Swedish Tax Agency s reports of crime could be improved and how feedback of information from prosecutors could be done in a structured manner. The strategic collaboration continued during the year with the rest of the Swedish Tax Agency as well. An in-depth collaboration has been established due to the new legislation on tax surcharges. The authorities have conducted a joint analysis of the legislation and prepared new system support and judicial documents and procedures. In addition, joint training efforts were held with the aim of acquiring a common view of the legislation. The authorities also collaborate in crime prevention work. Among other things, the Swedish Economic Crime Authority is a part of the so-called Large Industry Group led by the Swedish Tax Agency. The group includes a large number of authorities and trade associations that jointly work to create sound competition and counter economic crime. Collaboration with the Swedish Companies Registration Office In 2015, a more structured collaboration was begun with the Swedish Companies Registration Office when the director-generals of the authorities expressed 38

41 a shared desire for expanded and more proactive collaboration. At the Swedish Economic Crime Authority, managers were appointed for strategic, national and operational collaboration. In 2016, several meeting were held and discussions conducted on the operations respective needs, conditions and opportunities. The collaboration has resulted in a joint report with proposals on joint activities to strengthen the authorities ability to contribute to more effective fighting of economic crime. Collaboration with the Swedish Institute of Authorized Public Accountants (FAR) In conjunction with the report Effects on economic crime after the abolishment of the auditing obligation for smaller limited companies, mentioned in the previous chapter, the authority established closer collaboration with the organisations of the business community. The aim is to discuss and take joint action to reduce the risk of committing crime in limited companies. Among other things, the authority, together with the Swedish Association of Consulting Accountants (SRF), prepared proposals on joint actions for 2017 and discussions on a general level have begun. RUBICON A good collaboration between authorities and bankruptcy trustees is important in fighting bankruptcy-related offences. This collaboration takes place in the scope of RUBICON, which in Swedish stands for routines for criminal investigations in bankruptcy, where besides the Swedish Economic Crime Authority, the Swedish Enforcement Authority, the Swedish Tax Agency, the Society of Reorganisation and Management Trustees (REKON) and Ackordscentralen participate. During the year, the parties held regular meetings around the country where various aspects of collaboration were addressed. In addition, a pilot project was begun with a special bankruptcy handling in companies (front companies) where there is a suspicion that the companies are used as tools for economic crime. The collaboration takes place here between the Swedish Economic Crime Authority s intelligence operation, the Swedish Enforcement Authority s special enforcement unit and the Swedish Tax Agency s creditors section. The objective is to be able to prevent economic crime in front companies early on and improve the conditions for bankruptcy and criminal investigations and the possibilities of asset recovery. A pilot project is under way until April 2017, after which an evaluation will be done. Lastly, closer cooperation was also begun between the Swedish Economic Crime Authority, the Swedish Enforcement Authority and the Swedish Tax Agency regarding prohibitions from conducting business. Swedish Council for the Protection of the European Union's Financial Interests (SEFI) The Swedish Council for the Protection of the European Union's Financial Interests (SEFI) aims to protect an effective and correct use of EU-related funding in Sweden. The SEFI Council s activities are regulated in the Ordinance on the Swedish Council for the Protection of the European Union's Financial Interests (2015:745). The SEFI Council s meetings are theme based, often with external lecturers. The themes in 2016 included corruption, strategy and methodology in the review of procurements and the new procurement rules. The objective is to create experiential exchange and learning among the members and to constitute a forum for analysis and proposed measures. In addition, the SEFI Council visited the European Anti-Fraud Office (OLAF) during the year. In 2016, the SEFI Council submitted its third report that comprises the years The report presents what steps were taken in Sweden during the period to promote effective and correct handling of EU-related funding. The Swedish Economic Crime Authority received one report of suspicions of fraud against the EU s financial interests during the year. The authority filed charged and issued two orders of summary punishment on suspicions of fraud against the EU s financial interests during the year. IT and skills provisioning Reporting requirement as per the public service agreement 2016: Judicial system information supply Within the scope of the work to create a digitally interconnected judicial chain (Ju2012/6639/SI), the Swedish Economic Crime Authority shall present how the authority has adapted operations so that documents can be exchanged digitally and directly between concerned authorities operational supports. The report shall present the extent to which this has been done and the manner in which it improved the quality and efficiency in the operations. 39

42 Judicial system s information supply (RIF) During the year, work was done to adapt the authority s operations so that documents can be exchanged digitally and directly with the operations support of the Swedish Tax Agency and the courts. The work has been conducted in three areas: Supportive information efforts to the operations in terms of information on investigation and prosecution decisions to the Swedish Tax Agency. The efforts sought to increase quality in an information exchange that pertains to intelligence from the Swedish Tax Agency s functions for reporting crime, criminal investigation and coordination to prevent double jeopardy. Work was also done to create conditions for a development of the prosecutor s IT support for information to the Swedish Tax Agency. The work is continuing in Introduction of new procedures for the exchange of documents with the Swedish Tax Agency in light of new legislation on the double jeopardy ban (SFS 2015:632). National educational and information efforts were done during the year. The efforts have created conditions for the operations in the investigation and prosecution process to digitally exchange necessary documents and decisions with the Swedish Tax Agency. Information in the authority on a new digital flow that the National Courts Administration, the Prosecution Authority and the Swedish Economic Crime Authority will jointly introduce in the first half of The new digital flow consists of the court, which previously used to the prosecutor, transitioning to sending documents directly to the prosecutor s digital case register. The change, which entails new routines for the operations, increase efficiency by record keeping previously done manually being handled automatically. IT strategy With a more effective digital support in the operational activities, considerable time is expected to be able to be saved and the work environment will improve. The Swedish Economic Crime Authority is implementing a strategic initiative to develop and improve the authority s IT support. Since the Swedish Economic Crime Authority was formed in 1998, the authority has had a common IT infrastructure with the Prosecution Authority. More than two thirds of the employees also have a computer in the Police Authority s infrastructure since it is there that the police s investigation support DurTvå is located. The Swedish Economic Crime Authority s IT strategy shall on a general level set out how IT contributes to and enables the achievement of the Swedish Economic Crime Authority s focus and long-term objectives. The aim of the IT strategy is to provide the Swedish Economic Crime Authority guidance in making the right decisions in choosing direction, planning and implementing operational development with support from IT. The objective is to develop and establish a base for a long-term IT strategy that increases the digital exchange of information between the various functions that are in the Swedish Economic Crime Authority and with stakeholders in the surrounding world, such as banks, defenders, courts, bankruptcy trustees, etc. Reporting requirement as per the public service agreement 2016: The Swedish Economic Crime Authority shall report how the authority works to achieve skills provisioning that is sustainable on both the short and long term. The gender equality perspective shall be taken into account in planning measures regarding skills provisioning. The report shall also present how the Swedish Economic Crime Authority and the Prosecution Authority cooperate in skills provisioning issues. Attractive employer As a general rule, the Swedish Economic Crime Authority can easily recruit the expertise that the operations require. The exception is the recruitment of prosecutors for the authority s smaller operating locations, where it has occasionally been a challenge to attract the right expertise. The authority s assessment is, however, that the vast majority of announced positions have a good number of qualified applicants, and that many are attracted by the authority s socially important mission. The authority being perceived as an attractive employer was also confirmed in the employee survey presented at the beginning of Continuously developing the employees skills is a success factor for a specialist authority. Since many of the people employed at the Swedish Economic Crime Authority do not have prior experience of investigating economic crime, the authority has a relatively extensive internal training operation. Basic courses for new employees are held annually in accounting and how to investigate bookkeeping crime, tax evasion and other offences in business activities. A number of internal continuing professional development courses are also provided in how to hold successful interrogations and the use of secret forcible means. Several professional roles also have internal networks for continuing professional development and experiential exchange, such as the authority s auditors and administrators. In total, the authority held more than 30 different courses in Since several courses were held on more than one occasion, the total number of training sessions was over

43 When the nature of economic crime changes, what expertise the Swedish Economic Crime Authority needs also naturally changes. In 2016, the Swedish Economic Crime Authority began the work of preparing a skills provisioning strategy. The work is continuing in 2017 and aims to generally describe what expertise is necessary to realise the authority s focus and objectives. This will become important input into the direction of future skills development efforts. The strategy shall also clarify a continuous process for work with skills provisioning and provide guidelines for various forms of staffing. The strategy will thereby provide the managers control and greater decision certainty in individual matters that concern skills provisioning. An important issue from a skills provisioning perspective is that the authority has the ability to use the collective expertise nationally and in workload peaks or very special kinds of crime can move cases or gather forces over location boundaries. In 2016, finding effective formats for national resource management has therefore been a prioritised issue in the governance of the operational activities. Trainee programme During the year, the authority worked with the government assignment to provide trainee positions to newly arrived immigrants and people with disabilities. The authority has identified duties, mainly in administrative support, where trainee positions could be offered and conducted a dialogue with the Public Employment Service with the aim of achieving a matching. It has been a challenge, but was done in a few cases. This work will be intensified in A challenging and secure working environment The employee survey presented during the year in 2016 showed that the authority s strengths were perceived to be within the areas of professional role and personal development. In this part, the answers show, for example, that the employees feel that they have interesting and stimulating duties and good conditions to use their expertise. The areas where the employee survey shows that there is more development potential were primarily about the work method and governance. The questions in this area concerned, for example, whether the authority has clear processes and a good feedback culture. In the Swedish Economic Crime Authority s employee survey, it could be confirmed that illicit influence in the form of threats, violence or harassment occurred only to a limited extent. The number of reported incidents was on a level comparable with the previous year. This view is confirmed in a 2016 report that came from the National Council for Crime Prevention on illicit influence against persons of authority, where the Swedish Economic Crime Authority has a low level of exposure compared with other organisations. The incidents that occur mainly concern harassment that is directed in various ways at the authority s employees, while threats and violence very rarely occur. Prosecutors are the most exposed professional group and the events usually occur in connection with with proceedings. Some occasional personal security matters have required extensive and far-reaching reactive measures. Even if illicit influence against the authority s employees is uncommon, it is important to emphasise that every time anyone is subjected is one time too many. The work with personal security issues is continuously under way and includes individual, long-term and adapted preventive security measures for a number of employees. In some cases with special security needs, the Swedish Economic Crime Authority also works with a broader appropriation. To meet the challenges that exist in the security area, the authority has continued to develop the security organisation at a local level. A large part of the security work in 2016 concerned ensuring that the premises at the Swedish Economic Crime Authority s new locations maintain a security level equivalent to the other premises. A transfer from temporary premises to permanent premises was done and the project was completed during the year. In addition, the authority actively and regularly participates in a security forum for the authorities that are included in the effort against organised crime. Besides active work to maintain a safe and secure workplace, the Swedish Economic Crime Authority also worked in 2016 to develop the systems in the work environment efforts from a broader perspective. Focus was on strengthening the operationally oriented, continuous and preventive work in, above all, the organisational and social working environment. The authority has drafted new guidelines for systematic work environment efforts and offensive special treatment and conducted skills development efforts for all managers in systematic work environment efforts and equal treatment. Cooperation in employer issues The Swedish Economic Crime Authority has continuous employer cooperation with both the Prosecution Authority and the Police Authority. The cooperation with the Prosecution Authority has mainly focused on skills provisioning and salary determination issues. Since 1 November 2015, the Prosecution Authority handles the payment of the Swedish Economic Crime Authority s salaries. The Swedish Economic Crime Authority sees this as a satisfactory solution and an example of efficient and suitable collaboration between authorities. The authorities have jointly made a declaration of intent to join the State Service Centre in The collaboration with the Police Authority has mainly concerned employer policy challenges due to the Swedish Economic Crime Authority s unique construction, e.g. division of responsibility for work environment 41

44 tasks. The Swedish Economic Crime Authority has also begun efforts to strengthen and develop the joint work between the employer and the authority s employees organisations. Employee turnover Employee turnover amounted to 12 per cent in In 2015, the corresponding figure was 6 per cent and in 2014, nearly 10 per cent. In 2016, an increase occurred in the number of employees who moved on to other employment. Turnover is on a par with state authorities otherwise, which have an average employee mobility of between 10 and 13 per cent 9. Number of employees, full-time equivalents The average number of employees at the Swedish Economic Crime Authority (including employees at the Police Authority who work in the Swedish Economic Crime Authority) was 592 people during the year. This can be compared to 559 people in 2015 and 575 people in These variations can be attributed to the authority having limited possibilities to re-recruit staff that quit in 2014 due to financial circumstances. This also affected the average number of employees in 2015 due to the time it took to re-staff the vacancies. In 2016, the authority continued to recruit and now has a good balance in the staffing relative to the budget. The number of full-time equivalents accounts for 91 per cent of the total average number of employees. In 2015, the corresponding figure was 92 per cent. Table 33. Average number of employees, by personnel category Personnel category Health status Total sickness absence of 4 per cent of employed staff at the authority was largely unchanged in 2016 compared to the year before. 58 per cent of the total sickness absence, i.e. more than half, related to absence due to illness during a consecutive period of at least 60 days. In 2015, the corresponding figure was 62 per cent. The Swedish Economic Crime Authority can confirm that long-term sickness absence decreased, which the authority views positively. The sickness absence among employees aged continued to increase, while it decreased in those aged 49 or over. During the year, the authority works to strengthen the systems in the work environment efforts. In 2017, we will implement another cooperation with the occupational health services with the aim of being able to apply illness prevention and health promotion measures earlier on to reduce both long-term and short-term sickness absence. Table 34. Sickness absence as a percentage of working hours 11 Sickness absence Women Men All aged All aged 49 and up Women aged Women aged 49 and up Men aged Men aged 49 and up Total Managers Prosecutors Police officers Civilian investigators, audit emphasis Civilian investigators, analysis emphasis Civilian investigators Administrators Others Total The public sector in brief 2015, Swedish Agency for Administrative Development 10 The category Other above includes staff at the head office and civilian employees in the criminal intelligence operations. 11 As the number of employees younger than 30 years is less than 10 people, sickness absence for this group is not reported separately. The authority s police personnel, who are employed at the Police Authority, are included in the report. 42

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46 Table reporting Special information on the handling of money laundering and financing of terrorism Table 1. Number of suspects prosecuted in accordance with the Act on Penalties for Money Laundering Offences (2014:307). Crime classification Handling illicit gains 18 Misdemeanour handling illicit gains 1 Money laundering Total Table 2. Number of prosecution and dismissal decisions regarding criminal suspicions in accordance with the Act on Penalties for Money Laundering Offences (2014:307). Costs and achievements Table 5. Crime prevention process cost Year Cost (SEK million) Table 6. Cost and achievements, intelligence process Year Cost (SEK million) Number of achievements 1,491 1, Cost per achievement (SEK 000s) Decisions Preliminary investigation not commenced Preliminary investigation discontinued Charges not filed, evidence problem Charges not filed, other reasons Order of summary punishment Refusal to prosecute Charged Total Table 3. The number of incoming and outgoing requests for international criminal law cooperation in concluded cases with suspicions under the Act on Penalties for Money Laundering Offences (2014:307). Number of requests in concluded cases Incoming Outgoing Total number of requests Table 4. The number of decisions for seizures, monetary seizures, custody, sequestration and forfeiture in concluded cases with suspicions under the Act on Penalties for Money Laundering Offences (2014:307). Number of decisions in cases concluded Seizures Monetary seizures Custody Sequestration Forfeiture 8 Total number of decisions Table 7. Cost per area of achievement, investigation and prosecution process Operational area, investigation and Cost (SEK million) per achievement area Achievement area High-volume cases Project cases Especially demanding cases Total Table 8. Cost per achievement, investigation and prosecution process Operational area, investigation and prosecution process Cost (SEK 000s) per achievement Achievement area High-volume cases Project cases Especially demanding cases Average all cases

47 Detentions and restrictions Table 9. Detentions and restrictions 2016 Number of days in detention Number of individuals detained Of which number of detained individuals with restrictions Average number of days with restrictions 1-20 days days days days days days days days days days days days days days days days days days days days > 400 days Total No suspects aged were detained. Four people aged were detained. All of them were aged 20 at the time of detention. One of these people was detained with restrictions for 16 days, and the other three were detained with restrictions for 28 days. Received, concluded and balanced cases Table 10. Number of cases received Case category High volume cases 2,633 3,426 2,514 Project cases 2,944 2,698 2,771 Especially demanding cases Other cases Total 5,810 6,357 5,573 Table 11. Number of cases concluded Case category High volume cases 2,855 3,233 2,689 Project cases 3,085 3,028 3,350 Especially demanding cases Other cases Total 6,265 6,614 6,439 45

48 Table 12. Number of cases in work balance 12 Case category High volume cases Project cases 1,867 1,795 1,639 Especially demanding cases Other cases Total 2,301 2,401 2,070 Table 16. Number of decided suspicions of crime Case category High volume cases 9,361 12,646 11,779 Project cases 28,974 26,523 28,210 Especially demanding cases 6,277 6,904 16, Other cases ,377 Total 44,830 46,311 58,122 Table 13. Number of cased in court balance 13 Case category High volume cases Project cases Especially demanding cases Other cases Total Received and decided suspicions of crime Through put times and balance age Table 17. Number of days from report to decision, average Case category High volume cases Project cases Especially demanding cases Other cases ,368 Total Table 14. Number of received suspicions of crime Case category High volume cases 8,980 13,036 11,550 Project cases 30,698 28,134 30,513 Especially demanding cases 6,970 6,737 13, Other cases Total 46,896 48,321 56,713 Table 18. Number of days from report to decision, median Case category High volume cases Project cases Especially demanding cases Other cases ,673 Total Table 15. Number of received suspicions of crime per category of crime Category of crime Tax evasion 25,677 23,913 25,020 Accounting crime 17,296 19,199 17,123 Fraud/embezzlement 1,203 1,752 11, False statements/forgery 590 1,694 2,209 Swedish Companies Act Market abuse Money laundering Other crime Total 46,896 48,321 56, The work balance pertains to cases under internal handling at the authority. The work balance consists mainly of on-going preliminary investigations. 13 The court balance pertains to cases with on-going charges in court. 14 Extreme value approx. 9,000 suspicions of crime in a large fraud case. 15 See Note See Note 14. Table 19. Age work balance, number of days, average Case category High volume cases Project cases Especially demanding cases Other cases ,325 Total Table 20. Age work balance, number of days, median Case category High-volume cases Project cases Especially demanding cases Other cases ,696 Total

49 Prosecution Table 21. Number of suspected individuals prosecuted Case category High volume cases Project cases ,075 Especially demanding cases Other cases Total 1,972 1,921 2,097 Table 23. Number of suspicions of crime prosecuted Case category High volume cases 1,577 2,278 2,035 Project cases 3,591 3,353 4,461 Especially demanding cases 1,779 2,432 11, Other cases Total 7,002 8,094 18,524 Table 22. Percentage of suspected individuals prosecuted Case category High volume cases 22% 24% 25% Project cases 19% 18% 22% Especially demanding cases 30% 26% 31% Other cases 23% 20% 16% Total 21% 21% 23% Table 24. Percentage of suspicions of crime prosecuted 18 Case category High volume cases 17% 18% 17% Project cases 13% 13% 16% Especially demanding cases 32% 37% 71% 19 Other cases 28% 14% 51% Total 16% 18% 33% Number and percentage of dismissal and prosecution decisions Table 25. Number of dismissal and prosecution decisions Decisions Preliminary investigation not commenced, preliminary investigation limitation 7,719 7,298 8,068 Preliminary investigation not commenced, other reasons 7,449 9,469 6,578 Total preliminary investigation not commenced 15,168 16,767 14,646 Preliminary investigation discontinued, preliminary investigation limitation 4,550 3,525 3,964 Preliminary investigation discontinued, other reasons 15,374 15,147 17,576 Total preliminary investigation discontinued 19,924 18,672 21,540 Charges not filed, evidence problem Charges not filed, other reasons Total charges not filed 1, ,142 Order of summary punishment 1,952 2,260 2,139 Refusal to prosecute Charged 4,961 5,798 16, Total prosecution decisions 7,002 8,094 18,524 Total dismissal and prosecution decisions 43,112 44,187 55, Extreme value. In 2014, approx. 9,000 suspicions of crime in a large fraud case. 18 Beginning with the 2014 Annual Report, the previous definition of the measure was changed. The change consists of the decision category Other decisions having been excluded from the numerator. These decisions are of an administrative nature, such as a correction of incorrect registrations. In 2016, 1,718 decisions of this kind were made. The exclusion of these decisions from the prosecution measure means that the percentage of prosecuted suspicions of crime in total increases by nearly one percentage point. 19 See Note See Note

50 Table 26. Percentage of dismissal and prosecution decisions Decisions Preliminary investigation not commenced, preliminary investigation limitation 18% 17% 14% Preliminary investigation not commenced, other reasons 17% 21% 12% Total preliminary investigation not commenced 35% 38% 26% Preliminary investigation discontinued, preliminary investigation limitation 11% 8% 7% Preliminary investigation discontinued, other reasons 36% 34% 31% Total preliminary investigation discontinued 46% 42% 39% Charges not filed, evidence problem 2% 1% 1% Charges not filed, other reasons 1% 1% 1% Total charges not filed 2% 1% 2% Order of summary punishment 5% 5% 4% Refusal to prosecute 0.20% 0.10% 0.10% Charged 12% 13% 29% 21 Total prosecution decisions 16% 18% 33% Total dismissal and prosecution decisions 100% 100% 100% Prosecution and through put time per area management group International judicial assistance Table 27. Percentage of prosecuted suspicions of crime, per area management group Area management group Stockholm 22 13% 11% 15% Gothenburg 16% 19% 22% Malmö 18% 22% 69% 23 Linköping 27% 23% 19% Table 29. Number of incoming and outgoing judicial assistance applications Number of judicial assistance applications Incoming Outgoing Total Umeå 24% 41% 26% Swedish Economic Crime Authority 21 See Note Excluding financial market chamber 23 See Note Excluding financial market chamber 16% 18% 33% Table 28. Number of days from report to decision, median, per area management group Area management group Stockholm Gothenburg Malmö Linköping Umeå Swedish Economic Crime Authority Table 30. Number of incoming and outgoing ARO inquiries Number of ARO inquiries Incoming Outgoing Total

51 Asset oriented crime fighting Table 31. Requested motions and amounts Year Requested motions Number Amount (SEK million) Number Amount (SEK million) Number Amount (SEK million) Sequestration Forfeiture Company fines Damages Total Table 32. Granted motions and imposed amounts Year Granted motions Number Amount Number Amount Number Amount (SEK million) (SEK million) (SEK million) Sequestration Forfeiture Company fines Damages Total Employees and sickness absence Table 33. Average number of employees, by personnel category Personnel category Managers Prosecutors Police officers Table 34. Sickness absence as a percentage of working hours 27 Sickness absence Women Men All aged Civilian investigators, audit emphasis Civilian investigators, analysis emphasis Civilian investigators Administrators Other Total Extreme value with cased that contained 127 motions for damages. If one ignores it and counts this as case as one, the number 16 and the total is 84 motions (compared with 210). 26 The category Other above includes staff at the head office and civilian employees in the criminal intelligence operations. All aged 49 and up Women aged Women aged 49 and up Men aged Men aged 49 and up Total As the number of employees younger than 30 years is less than 10 people, sickness absence for this group is not reported separately. The authority s police personnel, who are employed at the Police Authority, are included in the report. 49

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53 Financial statements Financing of operations For 2016, the Swedish Economic Crime Authority was allocated SEK 636 million in appropriations, which was an increase of SEK 27 million compared with The opening transfer amount from 2015 was SEK 11 million. The year s disposable funds thereby amounted to SEK 647 million. Operating costs The total operating costs amounted to SEK 639 million, which was an increase of SEK 47 million compared with Personnel costs increased by SEK 26 million28. Other operating costs increased by SEK 21 million. The number of employees increased by 33 people between 2015 and In addition, costs for IT services and consultants contributed to the higher operating costs in On 1 January 2016, the new Act (2015: 632) in Proceedings of a Tax Surcharge in Some Cases entered into effect. Resulting changes were introduced in the tax legislation and in the area of criminal procedure. The Swedish Economic Crime Authority received an additional appropriation of SEK 1.7 million and a one-time compensation of SEK 4 million for the implementation of the new legislation. The Swedish Economic Crime Authority used the funds as follows. The framework increase of the appropriation of SEK 1.7 million was used for reinforcement in the operating activities in accordance with the authority s resource allocation model. The one-time compensation was used for reinforcement with a central prosecutor resource at the authority's legal unit for the work on the implementation in 2016 and for training of employees in the operations prior to and after the effective date of the new legislation. The total cost for the training effort amounted to nearly SEK 4.5 million. 28 Including personnel costs for police employees that were recognised as a purchased service in the income statement. 51

54 INCOME STATEMENT (SEK thousand) Note Operating income Income from appropriations 637, ,915 Income from fees and other sources Income from grants Financial income Total 638, ,330 Operating costs Personnel costs 4-323, ,527 Premises costs -53,242-51,035 Other operating costs 5-245, ,412 Financial expenses Depreciation, amortisation and impairment -15,950-14,162 Total -638, ,330 Operating outcome 0 0 Collection operations Other income Funding transferred to the state budget from collection operations 0-58 Balance 0 0 Transfers Funds received from the state budget for financing of grants Contributions paid Balance 0 0 Capital change for the year

55 BALANCE SHEET (SEK thousand) Note 31 Dec Dec 2015 ASSETS Intangible assets Rights and other intangible assets ,654 Total 401 2,654 Tangible assets Improvement expense for other s property 10 24,208 25,025 Machinery, equipment, installations, etc ,705 28,087 Total 42,913 53,111 Financial assets Other long-term receivables 15 0 Total 15 0 Current receivables Accounts receivable 0 2 Receivables from other authorities 13 6,880 6,874 Other current receivables 2 0 Total 6,881 6,876 Period cut-off items Prepaid expenses 14 12,610 12,209 Total 12,610 12,209 Settlement with central government Settlement with central government 15-3,195-4,862 Total -3,195-4,862 Cash and bank balances Balance on interest-bearing account in Swedish National Debt Office 16 23,620 55,888 Seized funds 17 2, Total 26,122 56,639 TOTAL ASSETS 85, ,626 53

56 BALANCE SHEET (SEK thousand) Note 31 Dec Dec 2015 EQUITY AND LIABILITIES Authority capital Change in capital as per income statement 0 0 Total 0 0 Provisions Provisions for pensions and similar obligations 18 1,238 2,041 Other provisions 19 3,289 2,691 Total 4,527 4,731 Liabilities, etc. Loan in Swedish National Debt Office 20 39,214 51,620 Current liabilities to other authorities 21 5,683 18,614 Accounts payable 0 19,767 Other current liabilities 22 10,093 8,095 Total 54,991 98,096 Period cut-off items Accrued expenses 23 26,230 23,799 Total 26,230 23,799 TOTAL EQUITY AND LIABILITIES 85, ,626 APPROPRIATION REPORT Reporting against appropriations Appropriations (SEK 000s) Opening transfer amount Year s appr. as per appr. letter Total available amount Expenses Closing transfer amount Expense area 04 Judicial system, Framework appropriation 1:4 Swedish Economic Crime Authority ap. 1 Swedish Economic Crime Authority 10, , , ,252 7,828 Total 10, , , ,252 7,828 Financial conditions Appropriation credit=sek 19,083 thousand Expense area 4 Judicial system 1:4 Swedish Economic Crime Authority (Framework appropriation) ap. 1 Swedish Economic Crime Authority (frame) 54

57 Supplementary disclosures and notes Amounts are in thousands of Swedish kronor (SEK thousand) unless otherwise stated. Summation differences may occur. Supplementary disclosures Accounting principles Applied accounting principles The Swedish Economic Crime Authority s report complies with generally accepted accounting principles and the annual report is prepared in accordance with the Ordinance (2000:605) concerning Annual Reports and Budget Documentation as well as the Swedish National Financial Management Authority s (ESV) regulations and general guidelines regarding it. The accounts comply with the Bookkeeping Ordinance (2000:606) and ESV s regulations and general guidelines on it. After the closing date, invoices in excess of SEK 100 thousand were booked as period cut-off items. Valuation principles Fixed assets Fixed assets are defined as assets with a cost of at least a half price base amount and an economic life that amounts to at least three years. Objects that constitute a functioning unit and have a total cost amounting to at least half a price base amount are also classified as fixed assets. Fixed assets are recognised at cost less accumulated depreciation and amortisation according to plan. Depreciation/amortisation is applied on the estimated useful life from the month the asset is brought into operation. Depreciation/amortisation periods applied 3 years Electric devices, computers, servers Expensed directly Laptop PCs 3 5 years Intangible assets 5 years Office machines, vehicles 3 10 years Interior fittings 5 10 years Improvements on other s property 3 years Financial leasing (vehicles) Current assets Receivables have been recognised in the amounts that, on the basis of individual assessment, are estimated to be received. Other current assets have been recognised at cost or fair value if this is lower than cost unless otherwise stated in a note. Liabilities Other liabilities have been valued at cost and nominal value, respectively, unless otherwise states in a note. Seized funds that relate to foreign currency in safes have been valued at the closing day rate. 55

58 Compensation and other benefits Remuneration to the Insight Advisory Council according to Chapter 7 Section 2 of the Ordinance concerning the Annual Reports and Budget Documentation The amount includes compensation to Board members and senior executives, as well as compensable assignments in boards and advisory councils. Name Assignments in other state authority boards and councils and limited company boards Compensation 2016 SEK 000s Eva Håkansson, Director-General Swedish National Financial Management Authority, Swedish Tax Agency 1,354 Sophie Degenne 5 Lawden Redar 1 Swedish Prison and Probation Service s personnel disciplinary board 2 Inger Söderholm Swedish Prison and Probation Service, Appointments Board for prosecution authorities 6 Anders Hansson 1 Vällingebostäder AB, Swedish Prosecution Authority 2 Leif Ljungholm 1 Swedish Bar Association s disciplinary board, Swedish Press Council 2 Peter Källenfors 1 2 Anne Sallnäs Magnusson 1 3 Anne Ramberg 2 Court Board, MD of Sveriges advokaters Service AB, Skogssällskapet AB, Value Delegation 3 Kerstin Nyquist 2 Research Tax Relief Board, Audit Board s supervisory board 3 Patrick Reslow 2 Mattias Jonsson 2 Member of the Parliamentary Standing Committee on the Constitution and the Parliamentary Standing Committee on Justice National Courts Administration, Järntorgskvarteret AB, member of the Parliamentary Standing Committee on Economic Affairs Appointed to the Swedish Economic Crime Authority s Insight Advisory Council on 20 May Released from assignment in the Swedish Economic Crime Authority s Insight Advisory Council on 19 May

59 NOTES (SEK thousand) INCOME STATEMENT Note 1 Income from fees and other sources Income from training and conferences Income from personnel on loan Income from other Capital gain, machinery and equipment Total Of which fees taken out pursuant to Section 4 of the Fees Ordinance SEK 44 thousand. Note 2 Income from grants Salary subsidy and employment assistance 8 64 Total 8 64 Note 3 Financial income Interest income regarding Swedish National Debt Office Other financial income Total Note 4 Personnel costs Salary costs (excl. employer contributions, pension premiums and other statutory costs) Of which fees to the Insight Advisory Council and personnel not employed Employer s contributions Other personnel costs Total The increase in the personnel costs is due to the number of employees having increased by 20 people and customary salary reviews. The salary costs for those employed by the police are recognised under other operating costs as of 1 July Note 5 Other operating costs Other operating costs Total In the amount of other operating costs, salary costs for police officers are included in an amount of SEK 154,900 thousand, which is an increase by SEK 12,700 thousand. The average number of employed police increased by 13 people, to which a higher partial pension cost of SEK 2,400 thousand is additional. In addition, the operating costs for IT services and consultants increased by SEK 12,500 thousand. Note 6 Financial expenses Interest income regarding Swedish National Debt Office Other financial expenses Total Note 7 Income from fees not utilised Other income from collection operations 0 58 Total 0 58 Note 8 Funds received from the state budget for financing of grants Grants to the National Council for Crime Prevention Total

60 NOTE (SEK thousand) 31 Dec Dec 2015 BALANCE SHEET Note 9 Intangible assets Opening cost 8,066 5,979 Acquisitions for the year 0 2,087 Change of asset group -2,087 0 Disposals for the year -3,614 0 Total cost 2,366 8,066 Opening accumulated depreciation -5,412-5,049 Depreciation for year Change of asset group Disposals for the year 3,614 0 Total accumulated depreciation -1,965-5,412 Closing book value 401 2,654 Note 10 Improvement expense for other s property Opening cost 37,956 34,025 Acquisitions for the year 3,062 3,931 Disposals for the year -4,806 0 Total cost 36,212 37,956 Opening accumulated depreciation -12,931-8,307 Depreciation for year -4,928-4,624 Appreciation for the year 3,888 0 Disposals for the year 1,967 0 Total accumulated depreciation -12,004-12,931 Closing book value 24,208 25,025 Note 11 Machinery, equipment, installations, etc. Opening cost 65,868 64,296 Acquisitions for the year 5,666 2,357 Change of asset group 2,087 0 Disposals for the year -23, Total cost 50,115 65,868 Opening accumulated depreciation -39,749-32,093 Depreciation for year -13,642-8,441 Change of asset group Disposals for the year 20, Total accumulated depreciation -32,648-39,749 Closing book value 17,467 26,119 58

61 NOTE (SEK thousand) 31 Dec Dec 2015 BALANCE SHEET Note 12 Leasing assets Finance leases, vehicles Opening cost 2,701 0 Acquisitions for the year 255 2,701 Disposals for the year 0 0 Total cost 2,956 2,701 Opening accumulated depreciation Depreciation for year Disposals for the year 0 0 Total accumulated depreciation -1, Closing book value 1,237 1,968 Total tangible assets 42,913 53,111 Note 13 Receivables from other authorities Receivable, input value added tax 6,880 6,874 Total 6,880 6,874 Note 14 Prepaid expenses Prepaid rental costs 12,610 12,209 Total 12,610 12,209 Note 15 Settlement with central government Appropriations in interest-bearing flow Opening balance -10,982 6,265 Reporting against appropriations (+) 639, ,020 Appropriations added to interest-bearing account (-) -636, ,267 Repayment of appropriations (+) 0 0 Receivables/Liabilities regarding appropriations in interest-bearing flow -7,828-10,982 Receivable for holiday-pay liability not reported against appropriations Opening balance 6,120 7,105 Recognition against appropriations during the year under the exception rule -1, Receivable for holiday-pay liability not reported against appropriations 4,633 6,120 Amounts under investigation 0 0 Collection Opening balance 0 3,100 Recognised against income title 0-58 Collection funds paid to non-interest-bearing flow 0 58 Funds from interest-bearing account transferred to income title 0-3,100 Receivable regarding collection 0 0 Total settlement with central government -3,195-4,862 59

62 NOTE (SEK thousand) 31 Dec Dec 2015 BALANCE SHEET Note 16 Balance interest-bearing account in Swedish National Debt Office Appropriations 23,620 55,888 Total 23,620 55,888 The reduction is largely due to a change of accounting systems at year-end and that all invoiced received were paid before the final banking day in Granted interest-bearing account credit for 2016 is SEK 31,500 thousand. During the year SEK 0 was utilised. Note 17 Cash and bank balances Seized funds 2, Total 2, Note 18 Provisions for pensions and similar obligations Opening provision 2,041 2,849 Pension costs for the year Pension payments for the year -1,052-1,434 Closing provision 1,238 2,041 Pension provisions decreased due to people retiring. Note 19 Other provisions Opening provision 2,691 2,125 Annual provision Closing provision 3,289 2,691 No provisions have been utilised during the year Note 20 Loan in Swedish National Debt Office Pertain to loans for investments in fixed assets. Opening balance 51,620 56,987 Newly raised loans during the year 6,572 7,979 Repayments during the year -18,978-13,346 Closing balance 39,214 51,620 Granted credit lines according to appropriations letter 60,000 68,000 Note 21 Current liabilities to other authorities Employer s contributions 5,293 4,969 Swedish Prosecution Authority 0 46 Swedish Social Insurance Agency Försäkringskassan Swedish Police 0 13,236 National Government Employee Pensions Board 10 0 Other 4 13 Total 5,683 18,614 The reduction is largely due to a change of accounting systems at year-end and that all invoiced received were paid before the final banking day in

63 NOTE (SEK thousand) 31 Dec Dec 2015 BALANCE SHEET Note 22 Other current liabilities Employees tax withholdings 5,787 5,218 Seized funds 2, Finance leases 1,673 2,126 Other liabilities Total 10,093 8,095 Note 23 Accrued expenses Accrued holiday pay including social security contributions 22,181 21,819 Other accrued expenses 4,049 1,980 Total 26,230 23,799 The increase of the other accrued expenses is due to the Swedish Economic Crime Authority closing period 12 already on the final banking day of 2016 due to the transition to a new accounting system thereof more period-allocated supplier invoices. 61

64 COMPILATION OF MATERIAL INFORMATION (SEK thousand) Credit line, Swedish National Debt Office Granted 60,000 68,000 68,000 68,000 32,000 Utilised incl. finance leases 40,451 53,588 56,987 54,091 17,525 Credit at Swedish National Debt Office Granted 31,500 30,000 44,000 44,000 43,820 Maximally utilised 0 0 6,089 1,113 0 Interest-bearing account, Swedish National Debt Office Interest income Interest expenses Fee income Outcome ,228 2,381 Appropriated income Appropriation credit Granted in appropriation letter 19,083 18,278 17,683 15,744 13,146 Utilised 0 0 6,265 13,507 0 Appropriations Framework appropriation Appropriation savings 7,828 10,982-6,265-13,507 3,766 Personnel Full-year employees, EBM employees Full-year employees, police employees Average number of EBM employees Average number of police employees Operating cost Per full-year employee (incl. police employees) 1,188 1,156 1,057 1,162 1,093 Capital change For the year Brought forward

65 Signing of the Annual Report I hereby certify that the Annual Report for 2016 provides a true and fair view of the operations results, as well as costs, income and the authority s economic position. Stockholm, 22 February 2017 Eva Håkansson Director-General 63