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Follow the Money an Anthology on Asset-Oriented Law Enforcement

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Follow the Money an Anthology on Asset-Oriented Law Enforcement English version of report 2014:10 Follow the money An Anthology on Asset-oriented Law Enforcement Follow the money An Anthology on Asset-oriented Law Enforcement English version of report 2014:10 The Swedish National Council for Crime Prevention (Brå) – centre for knowledge about crime and crime prevention measures The Swedish National Council for Crime Prevention (Brå) works to reduce crime and improve levels of safety in society by producing data and disseminating knowledge on crime and crime prevention work. ISSN 1100-6676 URN:NBN:SE:BRA-721 © Brottsförebyggande rådet 2014 Authors: Ann-Marie Ahlqvist, Patricia Arnolds, Maria Becht, Camilla Brage, Cecilia Faudot Karlsson, Stefan Holm, Lars Korsell, Stefan Lind, Anders Lindberg, Marcus Nordlund, Lotta Rytter Dufwa, Erik Sandstedt, Johanna Skinnari, Johan Tegle, Anders Tegsten, Jan Tibbling, Daniel Vesterhav, Peter Waldau, Pierre Westén, Hélen Örnemark Hansen Editor: Hélen Örnemark Hansen Coverphoto: Mostphotos Production: Ordförrådet AB The Swedish National Council for Crime Prevention (Brå), Box 1386, SE-111 93 Stockholm Tel +46 8 527 58 400, e-mail: [email protected], www.bra.se Content Preface ....................................................................................... 5 Chapter 1 What is asset-oriented law enforcement? .................................... 7 Chapter 2 Measures in the chain of control and the justice system ........... 17 Chapter 3 The criminal economy .............................................................. 29 Chapter 4 Offences and environments ..................................................... 47 Chapter 5 Track, secure, recover – attacking the incentive for crime ......... 61 Chapter 6 Tactics: lower and higher levels ................................................ 79 Chapter 7 Receivables and claims ........................................................... 101 Chapter 8 International perspectives – mapping, cooperation and tools .......................................... 119 Chapter 9 How do we measure asset-oriented law enforcement? ............ 141 Chapter 10 Need – regulatory changes ..................................................... 157 English version of report 2014:10 Preface Today, it is more or less obvious to most practitioners that com- bating economic and serious organized crime is more effective if the traditional law enforcement is supplemented by an asset-ori- ented approach: “Follow the money”. Why, then, is there a need for an anthology in the form of a handbook in this area? One reason is that there are indicators that public authorities have not succeeded particularly well to date. Expectations have been high and the outcome has been questioned. In this anthology, the authors provide their view on the asset-oriented approach and can contribute to disseminating knowledge about it in a single volume. The idea for the project was generated by a number of cooperat- ing authorities, who also followed the project through a refer- ence group. The group comprised representatives of the Swedish National Council for Crime Prevention, the Swedish Economic Crime Authority, the Swedish Social Insurance Agency, the Swed- ish Police, the Swedish Enforcement Authority, the Swedish Tax Agency, Swedish Customs, and Lund University. The authors of the anthology, who are identified under the following titles, are also professionally active at these authorities. The authors are personally responsible for their contributions. The editor of the anthology is Lecturer Helen Örnemark Hansen at Lund University, and she was assisted by Jennie Nordenström, Johan Ramklint, and Maja Rudling. The scholarly reviewers were Lennart Johansson, president of the Courts of Sweden Judicial Training Academy, and Professor Emeritus Per Ole Träskman of Lund University. 5 English version of report 2014:10 The project was financed by the National Bureau of Investi- gation, the Swedish Economic Crime Authority, the Swedish Enforcement Authority, Swedish Customs, the Swedish Social Insurance Agency, Lund University, and the Swedish National Council for Crime Prevention. The English edition is an abridged version which has been revised for an international audience. Stockholm, August 2017 Erik Wennerström Director General Daniel Vesterhav Unit Director 6 English version of report 2014:10 Chapter 1 What is asset-oriented law enforcement? Lars Korsell, Swedish National Council for Crime Prevention Helén Örnemark Hansen, Lund University 7 English version of report 2014:10 1.1 Current definition The meaning of the concept of ’proceeds of crime’ is less than clear-cut. In judicial terms, the implication of the term is limited to seizure, confiscation, and extended confiscation. However, it is not necessarily the case that all assets that are seized or confis- cated should be considered to be proceeds of crime (this includes, for instance, instrumentalities of crime). One possible method for effecting criminal asset recovery is the use of corporate fines. It is also possible to use damages for obstructing financial gains from criminal activities, in cases where damages incurred are equiv- alent to proceeds of crime. Impoundment does not necessarily have to do with crime, but is a preventive measure aimed at guar- anteeing tax revenues (similar to sequestration). The same goes for attachment, used within the framework of the asset-oriented law enforcement as a tool to “regulate” the debts of specific indi- viduals identified as profiting from crime. The term asset-oriented law enforcement is conceptually broader than that of recovery of proceeds of crime (meaning to search, seize, and confiscate crime proceeds). Rather than referring to recovery of proceeds of crime and criminal assets, the alternative terminology of asset-oriented law enforcement is preferred. By forgoing concepts stressing the criminal asset side of things exclu- sively – in favour of the broader terminology of the asset-oriented law enforcement – the efforts of non-law enforcement agencies also gets accommodated. The strategy of the asset-oriented law enforcement basically is to eliminate the opportunities of individuals for criminal gains. If this strategy is to be successful, the relevant authorities need to be equipped with appropriate tools. 1.2 Retrospective – a new approach/take/ perspective to law-enforcement Today, quantities are not only talked about in terms of the size of drug shipments, number of weapons, and length of prison sentences, but amounts of money as well. “How much?” – such is the question asked after authorities have successfully captured money and other assets belonging to various criminals (Korsell 8 English version of report 2014:10 2012). (Or, perhaps with more exactitude, “successfully recap- tured”). The act of confiscating cash, motorbikes, luxury watch- es, gold chains, and other property in lieu of proceeds of crime takes on an almost symbolic significance, as offenders are forced to return that which they once obtained through theft, robbery, and fraud. The Swedish Enforcement Authority and the Swedish Tax Agency have indeed always seen things from the financial angle; “fol- low the money” was never anything new for these government agencies. Turning to the judicial system, the Swedish Economic Crime Authority – traditionally focusing on taxes and insol- vency – significantly enough spearheaded the asset-oriented law enforcement by establishing a dedicated asset recovery office. But the Police and the Swedish Prosecution Agency were not far behind in stressing the importance of money; if the driving force of economic and organized crime is money – and that which can be bought with it – then law enforcement ought to have the same focus. If not, agencies are failing to ‘hit it where it hurts’. As a consequence increasingly economic perspectives on crime, agencies specializing in the area – such as the Swedish Social Insurance Agency, the Swedish Enforcement Authority, and the Swedish Tax Agency – are gradually taking on more important roles in an arena up until recently dominated by police and prosecutors (Korsell 2012). Instead of trying to get at proceeds of crimes such as drug dealing through confiscation, we are now seeing the tax weapon and its constituent parts (assessment, addi- tional assessment, tax surcharge, and impoundment) being used to get at the profits from activities such as undeclared work (Brå 2007:27, Brå 2011:7). While this is going on, the Swedish Social Insurance Agency is constantly reviewing outgoing subsidies and economic support, reclaiming that which has been paid out incorrectly. As we know, flows of income from criminal activities are often precarious and irregular – which is why social welfare systems have a function in the criminal economy as well (Brå 2007:4, 2011:7, 2011:12, compare chapter 3). On its part, Swedish Enforcement Authority is coming to the fore, ready to intervene with distraint as assets are continuously uncovered, freeing them up for payment of previously mentioned taxes, among other things. Social insurance agency, enforcement authority, and tax agency are today all considered natural partners in the fight of the police and associated authorities against organized crime. The scenery for law enforcement is now arguably changing before our eyes. While this has not been reflected in the estab- lishment of new agencies (as in some other countries), already 9 English version of report 2014:10 existing ones have seen organizational reforms – and, most importantly, improved inter-agency cooperation, together with increasingly
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