On the occasion of the European day on the protection of children against sexual exploitation and sexual abuse (18 November), the Commission reaffirmed its determination to fight child sexual abuse with all the tools at its disposal. Promoting our European Way of Life Vice President Margaritis Schinas said: “Under the Security Union Strategy, we are working to protect all those living in Europe, both online and offline. Children are particularly vulnerable, especially as the coronavirus pandemic correlates with increased sharing of child sexual abuse images online, and we have an obligation to protect them.”
Home Affairs Commisioner Ylva Johansson said: “Imagine as a child victim knowing the worst moment in your life is still circulating on the internet. Even worse, imagine that an opportunity to be saved from ongoing abuse was missed because tools had become illegal. Companies need to be able to report so that police can stop images circulating and even save children.”
Over the last years, there has been a significant increase in child sexual abuse and exploitation cases and recently the coronavirus pandemic has exacerbated the situation. Europol found that as member states introduced lockdown and quarantine measures, the number of self-produced materials increased, while travel restrictions and other restrictive measures means that offenders increasingly exchange materials online.
In July, the Commission adopted a comprehensive EU strategy for a more effective fight against child sexual abuse. Under the Strategy, we proposed legislation to ensure that providers of online communications services can continue voluntary measures to detect child sexual abuse online. In addition, Europol provides support to operations such as the recent action targeting child trafficking. The agency also monitors criminal trends in the Internet Organized Crime Threat Assessment (IOCTA) and dedicated reports on the evolution of threats, including child sexual abuse, in the times of COVID-19.
Over 40 arrested in biggest-ever crackdown against drug ring smuggling cocaine from Brazil into Europe
In the early hours of the morning (27 November), more than a thousand police officers with the support of Europol carried out co-ordinated raids against the members of this highly professional criminal syndicate. Some 180 house searches were executed, resulting in the arrest of 45 suspects.
The investigation uncovered that this drug trafficking network was responsible for the annual importation of at least 45 tonnes of cocaine into the main European seaports, with profits exceeding €100 million over the course of 6 months.
This international sting, led by the Portuguese, Belgian and Brazilian authorities, was carried out simultaneously by agencies from three different continents, with coordination efforts facilitated by Europol:
- Europe: Portuguese Judicial Police (Polícia Judiciária), Belgian Federal Judicial Police (Federale Gerechtelijke Politie, Police Judiciaire Fédérale), Spanish National Police (Policia Nacional), Dutch Police (Politie) and the Romanian Police (Poliția Română)
- South America: Brazilian Federal Police (Policia Federal)
- Middle East: Dubai Police Force and Dubai State Security
Results in brief
- 45 arrests in Brazil (38), Belgium (4), Spain (1) and Dubai (2).
- 179 house searches.
- Over €12m in cash seized in Portugal, €300,000 in cash seized in Belgium and over R$1m and US$169,000 in cash seized in Brazil.
- 70 luxury vehicles seized in Brazil, Belgium and Spain and 37 aircrafts seized in Brazil.
- 163 houses seized in Brazil worth in excess of R$132m, two houses seized in Spain worth €4m, and two apartments seized in Portugal worth €2.5m.
- Financial assets of 10 individuals frozen in Spain.
In the framework of intelligence activities underway with its operational counterparts, Europol developed reliable intelligence concerning the international drug trafficking and money laundering activities of a Brazilian organized crime network operating in several EU countries.
The criminal syndicate had direct contact with drug cartels in Brazil and other South American source countries who were responsible for the preparation and the shipments of cocaine in maritime containers bound to major European seaports.
The scale of cocaine importation from Brazil to Europe under their control and command is massive and over 52 tonnes of cocaine were seized by law enforcement over the course of the investigation.
In April 2020, Europol brought together the involved countries who have since been working closely together to establish a joint strategy to bring down the whole network. The main targets were identified on either sides of the Atlantic Ocean.
Since then, Europol has provided continuous intelligence development and analysis to support the field investigators. During the action day, a total of 8 of its officers were deployed on-the-ground in Portugal, Belgium and Brazil to assist there the national authorities, ensuring swift analysis of new data as it was being collected during the action and adjusting the strategy as required.
Commenting on this operation, Europol’s Deputy Director Wil van Gemert said: "This operation highlights the complex structure and vast reach of Brazilian organized crime groups in Europe. The scale of the challenge faced today by police worldwide calls for a coordinated approach to tackle the drug trade across continents. The commitment of our partner countries to work via Europol underpinned the success of this operation and serves as a continued global call to action."
High-level conference on anti-money laundering and countering terrorist financing - closing the door on dirty money
On 30 September, the European Commission hosted a high-level conference on the EU's fight against money laundering and terrorist financing. This conference marked the conclusion of the public consultation that was launched in parallel with the adoption of the Anti-Money Laundering Action Plan on 7 May 2020.
There was a series of dedicated panel debates and keynote speeches by high-profile speakers who are on the front line of the fight against dirty money, including Catanzaro Chief Prosecutor Nicola Gratteri and French Court of Cassation General Prosecutor Francois Molins.
An Economy that Works for the People Valdis Executive Vice-President Dombrovskis said: “Dirty money should have nowhere to hide. The EU has been ramping up its anti-money laundering rules. They are now among the toughest in the world - but still not enforced equally across the board. It is clear that we must do a lot more to shut off remaining loopholes, remove weak links, and co-ordinate better between EU countries. Effectiveness, efficiency, enforcement: these are the governing principles of our strategy in tackling money-laundering. They should apply across the EU and across the world. That is how we can beat it.”
Three thematic panels will cover the areas for future reform of EU rules, while a closing roundtable will bring together representatives from the European Commission, the German Presidency and the European Parliament to highlight the EU's united position and commitment to fighting money laundering and terrorist financing. Each panel will include an opportunity for questions via Twitter with the hashtag #StopDirtyMoneyEU. For more information, details on the programme and a link to the live feed, please see here.
Russian - Irish Business Council launches an inquiry into Russian businessman
The Russian Irish Business Council has launched a broad inquiry into alleged illegal activities of Russian businessman Mr. Sergey Govyadin and his close associate Mr. Ildar Samiyev.
The Council, unifying companies working in the UK, EU and Russia, have sent a letter to HSBC and a number of other financial institutions in the UK requesting information the banks might have about Mr. Sergey Govyadin. It alleges that both he and Mr. Samiyev were obviously involved in money laundering and other illegal purposes via the UK legal system and the UK offices of HSBC. The Council asks to investigate possible acts of fraud by Mr. Govyadin and Mr. Samiyev. This information was also sent to the US Internal Revenue Service for consideration and possible feedback due to its criminal background. There are indications that both are using the US monetary mechanisms for their illegal activities. Full copies of these letters can be read at the foot of this article, whilst numerous legal papers are in EU Reporter's possession.
The story of Sergey Govyadin has much in common with other infamous "new riches" from Eastern Europe who have a profound criminal portfolio.
Visibly a prosperous real estate businessman and developer, Sergey Govyadin is alleged in Russian media as being involved in many criminal cases related to fraud and other criminal incidents on selling elite property and apartments in luxurious districts in Moscow. Newspapers in Russia call Mr. Govyadin a "shadow influencer" alleging corrupt connections with a number of police authorities.
Togather with Ildar Samiyev, Mr. Govyadin has long been featured in the Russian criminal chronicle as a scandalous person, primarily found in fraudulent deals with private property and luxe apartments in fabulous districts in Moscow and in its suburbs. Back in 2015, Govyadin was “crowned” as a “successful millionaire” by tabloid press. By that time he was married to the beauty pageant - Miss Russia. However, his name remains on the lists of fraudsters and corrupt officials published from time to time by the media.
According to them, Govyadin and Samiev denigrate other people who are their partners, in order to justify their allegedly illegal transactions. In Moscow, a high-profile trial has long been underway in the case of developer Albert Khudoyan, whom Govyadin and Samiev accused of fraud and deception. As a result, the businessman was arrested. His case became additionally known due to violations on the part of the investigation. Some corrupt law enforcement officials tried to profit from his arrest according to the media.
Russian business ombudsman Boris Titov has already defended Khudoyan. However, the process against him continues. Khudoyan suffers from heart disease.
The alleged illegal activities of Govyadin and Samiyev have a long history.
For example, together with Ildar Samiev, Govyadin is alleged to have taken part in the withdrawal of funds from Russian Svyaz Bank. He is alleged to have been involved in fraud with apartments in the elite Knightsbridge residential complex in Khamovniki district of Moscow, as well as a number of other stories.
For example, back in 2014, Optima property management LLC, owned by Govyadin, took $ 95 million loan from the state-owned Svyaz Bank and used the funds to purchase 22 apartments in the elite Knightsbridge residential complex under construction in Khamovniki. This company was controlled by Sergey Govyadin and Ildar Samiev through a chain of companies, namely the Russian LLC "Eurofinance" and the English company Mansfiled Executive Limited (from 25 to 50 percent of Mansfiled Executive Limited belongs to Govyadin, according to the Endole database). At the same time, the price of apartments under the deal was inflated, which allowed to actually withdraw more than a billion rubles from the state Bank.
The residential complex was constructed in 2016. Probably, because of the extremely high price, the purchased apartments remain on the balance sheet of Optima property management, since it is impossible to sell them at such a high price. Optima properties has not yet returned the debt to the Bank, and in 2018 Svyaz Bank filed a lawsuit to recover $ 95 million from Optima property management, but failed. As a result, the state, which is the owner of Svyaz Bank, suffered, having completed its rehabilitation in 2011. The debtor has apartments on the balance sheet that are unlikely to cost more than 50 percent of the debt amount, and more than 1 billion rubles settled on the accounts of the developer Knightsbridge, controlled by Govyadin.
It is obvious that the request of the Russian Irish Business Clouncilwill be an occasion for more close and detailed attention to the illegal activities of Govyadin & Co. British and American financial institutions will hopefully be held accountable of those international speculators.
USA tax letter