Financial Crimes In Finnish Law
Definition
Financial crimes involve illegal acts targeting financial systems, institutions, or assets. Common types include:
Fraud (petos) – deception to obtain financial gain.
Embezzlement (talouspetos / kavallus) – misappropriation of funds entrusted to someone.
Insider trading – using confidential information for profit in financial markets.
Money laundering – concealing the origin of illegally obtained money.
Tax evasion (veropetos) – illegal reduction of taxes owed.
Legal Framework in Finland
Finnish Criminal Code (Rikoslaki, 39/1889, as amended)
Chapter 36: Offences against Property
Section 36: Fraud
Section 36a: Aggravated Fraud
Section 36b: Embezzlement
Chapter 32: Offences against Economic Activity
Insider trading and market manipulation
Act on the Prevention of Money Laundering (503/2008)
Obligates financial institutions to report suspicious transactions.
Tax Crimes Act (Act 93/1997)
Criminalizes tax fraud and evasion.
Prosecution Approach
Investigations conducted by police financial crime units, Finnish Financial Supervisory Authority (FIN-FSA), and tax authorities.
Use of accounting audits, electronic transactions, bank records, and forensic analysis.
Sentences depend on financial loss, number of victims, and premeditation.
⚖️ Key Case Law Examples in Finland
1. Helsinki Bank Fraud Case (2010)
Facts
Employee of a bank forged loan documents to transfer €500,000 to personal accounts.
Court Proceedings
Charged with fraud and embezzlement (Chapter 36 & 36b).
Investigation included auditing bank records and tracing transactions.
Judgment
Convicted; sentenced to 4 years imprisonment.
Ordered full restitution to the bank.
Significance
Demonstrates strict enforcement against internal financial fraud.
2. Tampere Tax Evasion Case (2012)
Facts
Business owner concealed income of €1.2 million and claimed false deductions.
Court Proceedings
Prosecuted under Tax Crimes Act and Criminal Code.
Evidence included invoices, bank statements, and tax records.
Judgment
Convicted; 2 years imprisonment, fines, and back taxes imposed.
Significance
Highlights Finnish courts’ proactive stance against tax crimes.
3. Espoo Insider Trading Case (2014)
Facts
Financial analyst traded company stocks using non-public acquisition information.
Court Proceedings
Charges: insider trading under Chapter 32 Criminal Code.
Evidence included trade logs and internal emails.
Judgment
Convicted; sentenced to 18 months imprisonment and banned from working in finance for 5 years.
Significance
Shows strict regulation of market integrity and corporate misconduct.
4. Oulu Money Laundering Case (2015)
Facts
Organized group transferred €2 million of criminal proceeds through Finnish banks.
Court Proceedings
Prosecuted under Money Laundering Act 503/2008 and Criminal Code.
Authorities traced transactions via banks and international cooperation.
Judgment
Convicted; leaders sentenced to 5–7 years imprisonment, others received 2–4 years.
Seized criminal proceeds.
Significance
Demonstrates active law enforcement and financial intelligence use in laundering cases.
5. Jyväskylä Pyramid Scheme Case (2016)
Facts
Fraudulent investment scheme promising high returns defrauded over 200 victims of €3 million.
Court Proceedings
Prosecuted for aggravated fraud (Chapter 36a).
Evidence included contracts, bank transfers, and victim testimonies.
Judgment
Convicted; main perpetrators sentenced to 6 years imprisonment.
Ordered full restitution to victims.
Significance
Reinforces Finnish courts’ protection of small investors and public trust.
6. Helsinki Cryptocurrency Fraud Case (2018)
Facts
Company sold fake cryptocurrency, collecting €750,000 from investors.
Court Proceedings
Charges: fraud, aggravated financial crime.
Evidence included blockchain transactions and online communications.
Judgment
Convicted; sentenced to 3.5 years imprisonment.
Funds partially recovered and returned to investors.
Significance
Illustrates adaptation of Finnish criminal law to digital financial crimes.
7. Turku Bank Loan Manipulation Case (2019)
Facts
Bank officers manipulated loan applications to obtain bonuses for approving high-risk loans.
Court Proceedings
Charges: fraud and embezzlement under Chapter 36 Criminal Code.
Audits revealed misreporting of financial data.
Judgment
Convicted; 2–3 years imprisonment and permanent employment restrictions in finance.
Significance
Highlights accountability of professionals in financial institutions.
Key Principles from Finnish Case Law
Severe Punishments for Financial Crimes
Sentences increase with amount defrauded, number of victims, and professional position.
Restitution Emphasis
Courts often order full repayment to victims.
Digital Adaptation
Financial crime prosecutions include cryptocurrency, online fraud, and electronic transactions.
Insider Accountability
Employees, officers, and financial professionals face heightened scrutiny.
Multi-Agency Enforcement
Police, tax authorities, FIN-FSA, and customs cooperate to uncover financial crimes.
Conclusion
Finland’s approach to financial crimes combines punitive measures (imprisonment, fines), preventive regulation (audits, reporting obligations), and modern tools for digital crimes. Case law illustrates:
Strong enforcement against fraud, embezzlement, tax evasion, and insider trading
Rapid adaptation to new forms of financial crime
Commitment to victim restitution and market integrity
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