On July 5, 2024, Europol announced that in an international law enforcement action against organized crime, French and Spanish authorities had arrested five members of an alleged Chinese money laundering network operating across Europe. The joint law enforcement operation, supported by Europol, highlights the network’s extensive capacity to smuggle over €1 million in cash daily. Money laundering is still a highly attractive business.
Money Laundering & Operation Details
Assessing the precise scale of money laundering is challenging, but its magnitude is widely recognized as substantial. According to estimates by the United Nations Office on Drugs and Crime (UNODC), between 2% and 5% of the global GDP is laundered annually. This translates to an astonishing EUR 715 billion to EUR 1.87 trillion each year.
The announced law enforcement action action took place between July 2 and 3 and involved extensive searches across multiple locations in Spain, including Madrid, Valencia, Alicante, and Barcelona. Approximately 100 Spanish police officers, assisted by French Judicial Customs investigators and Europol experts, searched homes, company headquarters, commercial warehouses, and restaurants.
During the raids, authorities seized close to €160,000 in cash. Among those arrested was the alleged leader of the criminal network, marking a significant blow to the group’s operations.
Investigation Background
The investigation began in February 2021, following a substantial cash seizure by French Customs in Perpignan. Authorities discovered over half a million euros hidden in a vehicle equipped with a concealed compartment, triggering a deeper probe into the money laundering activities.
Under the direction of the Specialised Interregional Jurisdiction (JIRS) of Marseille, the French National Anti-Fraud Office (ONAF) uncovered a sophisticated network of Chinese nationals believed to have been active since at least 2019. This network was involved in various illicit activities, including trafficking counterfeit goods, tax and customs fraud, and prostitution.
Operational Scope
The criminal network utilized a complex logistical setup to facilitate the movement of large sums of cash across Europe. The scale and efficiency of their operations allowed them to launder significant amounts of money daily.
Bottom Line
The arrests and seizures mark a significant milestone in the fight against money laundering and organized crime in Europe. As investigations continue, authorities remain vigilant in their efforts to track and eliminate similar criminal enterprises, ensuring the integrity and security of financial systems across the continent. FinTelegram will continue to monitor and report on the developments in this case and other significant financial crime activities.
