With the active support of Eurojust and Europol, a coordinated action has led to the dismantling of a cryptocurrency fraud network operating from Bulgaria, Cyprus and Serbia. The network operated professionally to set up call centres, which defrauded numerous victims in Germany, Switzerland, Austria, Australia and Canada for at least tens of millions of euros. Four call centres and 18 places were searched, and over 250 workplaces were identified in Serbia, Bulgaria, Cyprus and Germany. Fourteen persons were arrested in Serbia and one in Germany. Overall, more than 250 persons were interviewed and over 150 computers, various electronic equipment and data back-ups, three cars, two luxury apartments and one million US dollars in cryptocurrencies and 50 000 EUR in cash were seized.  Continue reading…

Economic crime raises serious moral and political concerns, undermines economic, physical, social and psychological well-being, and distorts the well-functioning of competitive markets. Covid-19, the war in Ukraine, the cost-of-living crisis, and other major disruptions have impacted the operation of both traditional forms of economic crime, such as public procurement fraud, and its new forms, such as romance fraud. Understanding this broader socio-economic context alongside the complexity of economic crime requires combining different disciplinary perspectives, being it criminology, law, economics, accountancy, security, business management, computer science, and psychology. Continue reading…

With the support of Eurojust, authorities in Italy and Albania have dismantled an online investment fraud involving the use of cryptocurrencies. During an action, EUR 3 million worth of assets were seized. Eurojust supported the judicial cooperation and assisted the authorities in setting up and funding a joint investigation team (JIT). According to the investigation, the investment fraud was carried out by an organised crime group (OCG) that operated from a call centre in Tirana, Albania. The suspects allegedly contacted victims by telephone using unidentifiable virtual numbers and delocalised virtual private networks (VPNs). They asked the victims to create an account on a portal and, once the transfer had been made, reset the newly created account, embezzled the sum received and made themselves untraceable. Continue reading…

The European Banking Authority (EBA) has on 6 December launched a public consultation on new Guidelines on the effective management of money laundering and terrorist financing (ML/TF) risks when providing access to financial services. Through these Guidelines, the EBA aims to ensure that customers, especially the most vulnerable ones, are not denied access to financial services without valid reason. This consultation runs until 6 February 2023. Access to at least basic financial products and services is a prerequisite for organisations and individuals to participate in modern economic and social life. It can also save the lives of vulnerable customers, such as refugees or homeless people. However, such access is not always ensured. Continue reading…

The FCA has fined Santander UK Plc (Santander) £107,793,300 after it found serious and persistent gaps in its anti-money laundering (AML) controls, affecting its Business Banking customers. Between 31 December 2012 and 18 October 2017, Santander failed to properly oversee and manage its AML systems, which significantly impacted the account oversight of more than 560,000 business customers. Santander had ineffective systems to adequately verify the information provided by customers about the business they would be doing. The firm also failed to properly monitor the money customers had told them would be going through their accounts compared with what actually was being deposited.  Continue reading…

The Financial Stability Board (FSB) has published a proposed framework for the international regulation of crypto-asset activities. The core components of this framework are proposals for: recommendations that promote the consistency and comprehensiveness of regulatory, supervisory and oversight approaches to crypto-asset activities and markets and strengthen international cooperation, coordination and information sharing; and revised high-level recommendations for the regulation, supervision, and oversight of “global stablecoin” arrangements to address associated financial stability risks more effectively. Continue reading…

Almost 3 000 cross-border money laundering cases have been registered at Eurojust during the past six years. Since 2016, the number of cases brought to the Agency has been steadily rising. Over 600 cases were brought to the Agency in 2021, representing more than double of those registered in 2016.These are some of the findings of Eurojust’s first comprehensive report on money laundering, published on 20 October. Due to its clandestine nature, the global scale of money laundering is difficult to measure, but it is considered to be significant. The United Nations Office on Drugs and Crime (UNODC) estimates that between 2 and 5% of global GDP – up to 1.87 trillion Euros – is laundered each year. This reflects Eurojust’s case statistics that show that money laundering cases accounted for almost 15% of all cases registered at the Agency between 2016 and 2021. Continue reading…

Supported by Eurojust and Europol, French authorities, in collaboration with Latvia and Spain, have taken action against an organised crime group (OCG) that used fraudulent software to duplicate keys and steal cars in France. In a coordinated action carried out in the three countries involved, thirty one suspects were arrested and twenty-two locations were searched. The suspects allegedly produced and used fraudulent software to steal vehicles by duplicating the vehicles’ ignition keys. Marketed as an automotive diagnostic solution, the tool was able to replace the original software of the targeted vehicles without respecting the protocol and without the original key. Continue reading…

by Nigel Cannings

Financial Institutions that fall foul of compliance regulations were fined $2.7 billion in 2021 globally, according to Forbes. This included violations of Anti-Money Laundering (AML) rules, Know Your Customer (KYC) checks and operating guidelines. As financial regulation increases to ensure the safety and security of the financial system and to protect consumers, financial institutions must consider how they can best protect themselves from compliance-related fines. Continue reading…

With the support of Eurojust, authorities in Finland, Germany, Belgium and Latvia have succeeded in striking a blow against the operators of various fraudulent online investment platforms that have defrauded victims from 11 different countries out of several million euros. During an action day, two suspects were arrested and 12 locations were searched. According to the investigation, victims were directed to seemingly reputable online trading platforms in search of offers for lucrative investments. Through these platforms, they were promised enormous profits in a short time by trading in cryptocurrency, foreign exchange or shares. Continue reading…