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Abusing the EU’s Temporary Protection: 23 underground bankers arrested

Jan 27, 2025 , , , , , , , , , , , ,

The Hague, 27 January 2025

Eurojust version: Criminals operating an illegal financial service to launder millions of euros busted

27 January 2025

An international investigation spanning several years has led to the arrest of 23 criminals running a sophisticated money laundering scheme. The group acted as a financial service for other criminals to launder their profits. The scheme facilitated the laundering of approximately EUR 100 million. An international coalition of Spanish, Cypriot and German authorities, with support of the French authorities and Eurojust and Europol, was established to dismantle the group. The takedown resulted in the seizure of over EUR 8 million in cash and the freezing of EUR 27 million in cryptocurrencies.

Investigations into the group began in 2023 when border police in Spain noticed suspicious trips from their airports transporting large sums of money. The trips to Cyprus by members of the criminal group were used to deliver criminal profits, which were then laundered. Authorities stopped the criminals from travelling and seized more than EUR 1.8 million.

The authorities discovered that the group was running a sophisticated money laundering service for other criminal organisations. The group acted as a financial service to transfer criminal profits internationally. Cryptocurrencies were used to move cash profits between criminal organisations. To dispose of the cash profits, money was transported on commercial flights, mainly to Cyprus, and by public transport to neighbouring countries of Spain. The group was able to carry out four to six money laundering transactions per week.

Running this financial service required a professionally structured organisation consisting of at least 52 members, operating mostly from Spain and Cyprus. The group worked with contacts outside of their organisation to liaise with clients and receive the cash to be laundered. Their contacts are linked to several commercial companies around the world.

As the financial service was used throughout Europe, authorities had to work together to stop the criminal group. An international investigation was launched by setting up a joint investigation team (JIT) at Eurojust between Spanish, Cypriot and German authorities, Eurojust and Europol. Through the JIT, information from tax and judicial authorities was exchanged that led to the takedown of the criminal group. Europol supported this international operation with experts specialised in financial crime, fighting high-risk criminal networks, unravelling money laundering structures, and tracing cryptocurrency flows.

A series of actions were carried out to stop the financial service. In October 2024, actions were carried out in Spain, France and Cyprus to dismantle the criminal group. This was followed by actions in November 2024 that targeted actors working with the criminal group. A total of 91 searches were carried out, 77 in Spain, 1 in France and 13 in Cyprus. Twenty suspects were arrested in Spain, one in France and two in Slovenia. Authorities seized a total of EUR 8 million in cash, 2 million in bank accounts and froze EUR 27 million in cryptocurrency. Investigations into the group and its financial service continue.

The following authorities were involved in the actions:

  • Spain: Investigating Judge no 2 of El Prat de Llobregat; Public Prosecution Office of Barcelona; Guardia Civil Special Central Unit 3, Destabilizing Threat Group-UCO
  • Cyprus: Attorney General’s Office; MOKAS (Unit for Combating Money Laundering); Criminal Investigation Department (CID) (in collaboration with other police departments)
  • Germany: Public Prosecutor’s Office, Landshut; Customs Investigation Office, München
  • France: Judicial Court of Marseille, Interregional Specialised Jurisdiction against organised crime (JIRS) ; National Anti-Fraud Office (ONAF), Marseille/Nice.

Source – Eurojust

 

Europol version: 23 underground bankers arrested

27 January 2025

On 19 November 2024, law enforcement across Europe cracked down on a criminal network led by two Ukrainian brothers. The action day, which follows raids conducted in October 2024, saw the arrest of several suspects and the seizure of various criminal assets. In total, the operation, which took place over several months, led to the arrest of 23 suspects, the seizure of EUR 35.7 million in cash, bank accounts and cryptocurrencies as well as 36 vehicles, real estate, watches, and jewellery.

The organised criminal network, composed of Ukrainian, Armenian, Azerbaijani, and Kazakh nationals, has been providing cash courier and underground banking services to other criminal networks. Chinese actors were also part of this criminal network, providing money laundering services.

This catalogue of crime-as-a-service offerings was used by various Russian-speaking and Asian criminal actors engaged in drug trafficking, tax evasion, or the smuggling of illicit goods.

These crimes were mostly committed in Spain.

Results of the action days include:

  • 23 suspects arrested (20 in Spain, 1 in France, and 2 in Slovenia)
  • 91 house searches carried out (77 in Spain, 1 in France, and 13 in Cyprus)
  • 17 additional suspects prosecuted
  • EUR 8.2 million in cash seized
  • EUR 27 million in cryptocurrency seized or frozen
  • EUR 2 million in bank accounts seized or frozen
  • 36 vehicles (including some luxury vehicles), real estate, luxury watches, jewellery as well as electronic devices seized
Abuse of the EU’s temporary protection status

The suspects are believed to have abused the temporary protection status granted to Ukrainian refugees by the EU since 2022, as well as other citizens affected by the Russian war of aggression against Ukraine. Many of the millions of refugees from Ukraine took their savings with them to Europe in cash to safeguard it from the consequences of the war.

Taking advantage of the exceptions put in place to facilitate the transfer of money between jurisdictions, the criminal network moved huge amounts of cash without being questioned in detail or scrutinised during customs checks. Declaring the cash sums as part of their own patrimony, the money mules, some of whom are family members of the criminal leaders, travelled regularly between Spain, Cyprus, France, and other countries.

Once several cash couriers started to be arrested, the criminal network adapted their modus operandi. It moved from significant physical cash movements to the cryptocurrency sphere, making the money transfers harder to detect. According to initial estimates, at least EUR 75 million had been moved from March 2023 to February 2024. During raids performed in Cyprus, law enforcement seized and froze around EUR 26 million in one cryptocurrency.

Europol’s role

Europol supported this international operation with experts specialised in financial crime, fighting high-risk criminal networks, unravelling money laundering structures, and tracing cryptocurrency flows.

Providing analytical, operational, and coordination support to the involved countries from the very start, Europol supported the action days by deploying analysts and specialists. During the action days, these experts performed cross-checks with their mobile offices, gave forensic support in reading out seized electronic devices, and provided cryptocurrency expertise.

Europol was also part of the judicial Joint Investigation Team formed by Eurojust and involving Spain, Cyprus, and Germany.

Empact

The European Multidisciplinary Platform Against Criminal Threats (EMPACT) tackles the most important threats posed by organised and serious international crime affecting the EU. EMPACT strengthens intelligence, strategic and operational cooperation between national authorities, EU institutions and bodies, and international partners. EMPACT runs in four-year cycles focusing on common EU crime priorities.

Source – Europol

 

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