Connect with us

Crime

Making sure crime does not pay: Commission reports on implementation of EU rules on seizing criminals' assets

SHARE:

Published

on

The Commission is today reporting on the implementation of EU rules on seizing tools used to commit crimes and revenues from criminal activities. Promoting our European Way of Life Vice President Margaritis Schinas, said: “We need to hit criminals where it hurts the most. Seizing illicit assets is one of the most powerful means to tackle serious and organised crime. Criminals and their assets move easily across borders, so we must strengthen action at EU level, together with member states and EU agencies.” 

Home Affairs Commissioner Ylva Johansson, said: “We need the right tools at our disposal to quickly and effectively deprive criminals of their financial gains and break their business model. We will continue to work closely with the European Parliament and the Council towards building a more effective EU asset recovery system.”

The report shows that the EU has deployed considerable efforts to harmonise rules on confiscation and asset recovery. Thanks to the 2014 Directive on the freezing and confiscation of proceeds of crime, there are now clear rules in place across the EU for seizing criminals' assets. In addition, Asset Recovery Offices have been established in all member states, helping to quickly trace illicit assets.

Advertisement

The recently-adopted Regulation on the mutual recognition of freezing orders and confiscation orders will also improve cross-border cooperation. However, much more remains to be done. Only 1% of criminal proceeds are confiscated in the EU according to Europol estimates, allowing organised crime groups to invest in the expansion of their criminal activities and infiltrate the legal economy.

The Commission will now assess the potential for further developing the EU's asset recovery system, based on the results of today's report, and in close cooperation with the European Parliament and the Council. The report and its annex are available online. More information on confiscation and asset recovery is available online.

Crime

18 arrested for smuggling more than 490 migrants across the Balkan route

Published

on

Officers from the Romanian Police (Poliția Română) and Border Police (Poliția de Frontieră Română), supported by Europol, dismantled an organized crime group involved in migrant smuggling across the so-called Balkan route.

The action day on 29 July 2021 led to:

  • 22 house searches
  • 18 suspects arrested
  • Seizure of munitions, five vehicles car, mobile phones and €22 000 in cash

The criminal network, active since October 2020, consisted of Egyptian, Iraqi, Syrian and Romanian citizens. The criminal group had cells in the countries across the Balkan route from where regional facilitators managed the recruitment, accommodation and transport of migrants from Jordan, Iran, Iraq and Syria. Several criminal cells based in Romania facilitated the border crossing from Bulgaria and Serbia of groups of migrants and arranged their temporary accommodation in the area of Bucharest and in western Romania. The migrants were then smuggled to Hungary on their way to Germany as a final destination. In total, 26 illegal transports of migrants were intercepted and 490 migrants were detected in an attempt to illegally cross the Romanian border. Very well organized, the criminal group was involved in other criminal activities as well, such as drug trafficking, document fraud and property crime.

Advertisement

Up to €10,000 per migrant

Migrants were paying between €4,000 and €10,000 depending on the trafficking segment. For example, the price for facilitating the crossing from Romania to Germany was between €4,000 and €5,000. The migrants, some of which were families with young children, were accommodated in extremely poor conditions, often with no access to toilets or running water. For the safe houses, the suspects rented accommodations or used the residences of group members, mainly situated in the areas of Călărași County, Ialomița County and Timișoara. In one of the safe houses, measuring about 60 m2, the suspects hid 100 people at the same time. The migrants were then transferred in risky conditions in overcrowded lorries between merchandise and in vans hidden in concealments without proper ventilation. 

Europol facilitated the exchange of information and provided analytical support. On the action day, Europol deployed one analyst to Romania to cross-check operational information against Europol’s databases in real time to provide leads to investigators in the field. 

Watch video

Continue Reading

Crime

Fight against ransomware: New website to get help faster marks five years of ‘No More Ransom' initiative that helped over six million victims recover their data

Published

on

Europol, the EU law enforcement agency, has marked five years of its ‘No More Ransom' project with a revamped website that allows easy access to decryption tools and other help in over 30 languages. The initiative supplies ransomware victims with decryption tools to recover their encrypted files, helps them report cases to law enforcement authorities and contributes to raising awareness about ransomware. Since its launch five years ago, the project has already helped more than six million victims worldwide and prevented criminals from making almost a billion euro in profits.

The Commission is a partner of the project, together with tech companies, law enforcement, and public and private sector entities. Ransomware is a type of malware that locks users' computers and encrypts their data. The criminals behind the malware demand a ransom from the user in order to regain control over the affected device or files. Ransomware represents a growing threat, affecting all sectors including energy infrastructure or health care. Protecting European citizens and businesses against cyber threats, including against ransomware, is a priority for the Commission. You will find more information in the press release published by Europol.

Advertisement
Continue Reading

Crime

Beating financial crime: Commission overhauls anti-money laundering and countering the financing of terrorism rules

Published

on

The European Commission has presented an ambitious package of legislative proposals to strengthen the EU's anti-money laundering and countering terrorism financing (AML/CFT) rules. The package also includes the proposal for the creation of a new EU authority to fight money laundering. This package is part of the Commission's commitment to protect EU citizens and the EU's financial system from money laundering and terrorist financing. The aim of this package is to improve the detection of suspicious transactions and activities, and to close loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system.

As recalled in the EU's Security Union Strategy for 2020-2025, enhancing the EU's framework for anti-money laundering and countering terrorist financing will also help to protect Europeans from terrorism and organised crime.

The measures greatly enhance the existing EU framework by taking into account new and emerging challenges linked to technological innovation. These include virtual currencies, more integrated financial flows in the Single Market and the global nature of terrorist organisations. These proposals will help to create a much more consistent framework to ease compliance for operators subject to AML/CFT rules, especially for those active cross-border.

Advertisement

Today's package consists of four legislative proposals:

An Economy that Works for People Executive Vice President Valdis Dombrovskis said: “Every fresh money laundering scandal is one scandal too many – and a wake-up call that our work to close the gaps in our financial system is not yet done. We have made huge strides in recent years and our EU AML rules are now among the toughest in the world. But they now need to be applied consistently and closely supervised to make sure they really bite. This is why we are today taking these bold steps to close the door on money laundering and stop criminals from lining their pockets with ill-gotten gains.”

A new EU AML Authority (AMLA)

At the heart of today's legislative package is the creation of a new EU Authority which will transform AML/CFT supervision in the EU and enhance cooperation among Financial Intelligence Units (FIUs). The new EU-level Anti-Money Laundering Authority (AMLA) will be the central authority coordinating national authorities to ensure the private sector correctly and consistently applies EU rules. AMLA will also support FIUs to improve their analytical capacity around illicit flows and make financial intelligence a key source for law enforcement agencies.

In particular, AMLA will:

  • Establish a single integrated system of AML/CFT supervision across the EU, based on common supervisory methods and convergence of high supervisory standards;
  • directly supervise some of the riskiest financial institutions that operate in a large number of member states or require immediate action to address imminent risks;
  • monitor and coordinate national supervisors responsible for other financial entities, as well as coordinate supervisors of non-financial entities, and;
  • support co-operation among national Financial Intelligence Units and facilitate coordination and joint analyses between them, to better detect illicit financial flows of a cross-border nature.

A Single EU Rulebook for AML/CFT

The Single EU Rulebook for AML/CFT will harmonize AML/CFT rules across the EU, including, for example, more detailed rules on Customer Due Diligence, Beneficial Ownership and the powers and task of supervisors and Financial Intelligence Units (FIUs). Existing national registers of bank accounts will be connected, providing faster access for FIUs to information on bank accounts and safe deposit boxes. The Commission will also provide law enforcement authorities with access to this system, speeding up financial investigations and the recovery of criminal assets in cross-border cases. Access to financial information will be subject to robust safeguards in Directive (EU) 2019/1153 on exchange of financial information.

Full application of the EU AML/CFT rules to the crypto sector

At present, only certain categories of crypto-asset service providers are included in the scope of EU AML/CFT rules. The proposed reform will extend these rules to the entire crypto sector, obliging all service providers to conduct due diligence on their customers. Today's amendments will ensure full traceability of crypto-asset transfers, such as Bitcoin, and will allow for prevention and detection of their possible use for money laundering or terrorism financing. In addition, anonymous crypto asset wallets will be prohibited, fully applying EU AML/CFT rules to the crypto sector.

EU-wide limit of €10,000 on large cash payments

Large cash payments are an easy way for criminals to launder money, since it is very difficult to detect transactions. That is why the Commission has today proposed an EU-wide limit of €10,000 on large cash payments. This EU-wide limit is high enough not to put into question the euro as legal tender and recognises the vital role of cash. Limits already exist in about two-thirds of Member States, but amounts vary. National limits under €10,000 can remain in place. Limiting large cash payments makes it harder for criminals to launder dirty money. In addition, providing anonymous crypto-asset wallets will be prohibited, just as anonymous bank accounts are already prohibited by EU AML/CFT rules.

Third countries

Money laundering is a global phenomenon that requires strong international cooperation. The Commission already works closely with its international partners to combat the circulation of dirty money around the globe. The Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, issues recommendations to countries. A country that is listed by FATF will also be listed by the EU. There will be two EU lists, a “black-list” and a “grey-list, reflecting the FATF listing. Following the listing, the EU will apply measures proportionate to the risks posed by the country. The EU will also be able to list countries which are not listed by FATF, but which pose a threat to the EU's financial system based on an autonomous assessment.

The diversity of the tools that the Commission and AMLA can use will allow the EU to keep pace with a fast-moving and complex international environment with rapidly evolving risks.

Next steps

The legislative package will now be discussed by the European Parliament and Council. The Commission looks forward to a speedy legislative process. The future AML Authority should be operational in 2024 and will start its work of direct supervision slightly later, once the Directive has been transposed and the new regulatory framework starts to apply.

Background

The complex issue of tackling dirty money flows is not new. The fight against money laundering and terrorist financing is vital for financial stability and security in Europe. Legislative gaps in one Member State have an impact on the EU as a whole. That is why EU rules must be implemented and supervised efficiently and consistently to combat crime and protect our financial system. Ensuring the efficiency and consistency of the EU AML framework is of the utmost importance. Today's legislative package implements the commitments in our Action Plan for a comprehensive Union policy on preventing money laundering and terrorism financing which was adopted by the Commission on 7 May 2020.

The EU framework against money laundering also includes the regulation on the mutual recognition of freezing and confiscation orders, the directive on combating money laundering by criminal law, the directive laying down rules on the use of financial and other information to combat serious crimesthe European Public Prosecutor's Office, and the European system of financial supervision.

More information

Anti-money laundering and countering the financing of terrorism

Proposal on centralized bank account registeries

Questions and Answers

Factsheet

Continue Reading
Advertisement
Advertisement
Advertisement

Trending