Lawrence Damilola
Sweden’s Financial Intelligence Unit (FIU) and the Swedish Police Authority have categorized certain cryptocurrency exchanges as “professional money launderers (PML)” after an analysis of unlicensed and illegal providers.
According to the FIU, these PMLs are linked to criminal activities and help facilitate systematic money laundering for various individuals and criminal networks.
According to the Swedish Financial Intelligence Unit, the Pakistan Muslim League has connections with criminal elements. It also plays a role in enabling organized money laundering activities for both individuals and criminal organizations.
The FIU report identified four profiles for these PMLs: the node exchange provider, the hawala exchange provider, the asset exchange provider, and the platform exchange provider. It emphasized the increasing threat illicit cryptocurrency services pose in money laundering operations.
Increased Monitoring of Crypto Exchanges in Sweden
The FIU report calls for greater involvement by law enforcement on crypto trading platforms to fight illegal activities. “FIU Sweden assesses illicit cryptocurrency providers as an emerging threat within money laundering schemes and a crucial part for organized crime to maintain and expand their criminal markets,” the report stated.
Swedish authorities also acknowledged the role of licensed and legitimate crypto platforms in preventing money laundering. These platforms were encouraged to monitor suspicious user activities, halt transactions when necessary, and offboard problematic clients.
This scrutiny of crypto exchanges is part of Sweden’s broader effort to tighten regulations on cryptocurrency-related activities. Recent enforcement actions have also targeted the country’s crypto mining industry, with authorities uncovering significant tax discrepancies.
Crypto Miners Face Tax Scrutiny in Sweden
Between 2020 and 2023, the Swedish Tax Agency investigated 21 crypto-mining firms and found that 18 had submitted misleading or incomplete tax information. According to the investigation, these firms avoided paying value-added tax (VAT) by underreporting their taxable operations.
The agency noted that this resulted in unpaid VAT, incorrect input VAT payments, and unreported crypto assets. The total tax demand from the investigation reached $90 million. Some of the mining firms appealed the charges, with the administrative court adjusting the amounts for two companies based on their appeals.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
