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-UCOCyprus: 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, MünchenFrance: Judicial Court of Marseille, Interregional Specialised Jurisdiction against organised crime (JIRS) ; National Anti-Fraud Office (ONAF), Marseille/Nice.
Brief
"On January 27, 2025, Eurojust issued an update regarding the takedown of a sophisticated money laundering scheme. An international coalition of authorities arrested 23 criminals and seized over EUR 8 million in cash, freezing an additional EUR 27 million in cryptocurrencies, resulting from a four-year investigation into the group's operations."
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Purpose
An international investigation has led to the arrest of 23 criminals running a sophisticated money laundering scheme, resulting in the seizure of over EUR 8 million in cash and the freezing of EUR 27 million in cryptocurrencies. The investigation was a collaborative effort between Spanish, Cypriot, German authorities, with support from French authorities, Eurojust, and Europol.
The international coalition established to dismantle the group used information exchanged through a joint investigation team (JIT) at Eurojust to track down and apprehend the suspects. This operation demonstrates the effectiveness of international cooperation in combating financial crime.
Effects on Industry
The dismantling of this money laundering scheme has significant implications for the financial industry, as it highlights the need for increased vigilance and cooperation among authorities to prevent such activities. The use of cryptocurrencies in the scheme also underscores the importance of monitoring these digital currencies to prevent their misuse.
This operation demonstrates that sophisticated money laundering schemes can be successfully dismantled through international collaboration and cooperation between law enforcement agencies and financial regulatory bodies. As a result, financial institutions and other organizations involved in high-risk activities must remain vigilant and take steps to implement robust anti-money laundering (AML) controls to prevent similar schemes from emerging.
Relevant Stakeholders
The following stakeholders are affected by this operation:
- Financial institutions and banks that may have unknowingly facilitated money laundering activities through their services
- Businesses and organizations involved in high-risk activities, such as trade finance, commodities trading, or real estate transactions, which can be vulnerable to money laundering schemes
- Regulators and law enforcement agencies responsible for enforcing AML regulations and investigating financial crimes
These stakeholders must take steps to ensure they are complying with relevant laws and regulations regarding AML and implementing effective controls to prevent the misuse of their services.
Next Steps
To comply with this update, financial institutions and businesses involved in high-risk activities should:
- Review their existing AML policies and procedures to ensure they are adequate and up-to-date
- Conduct risk assessments to identify potential vulnerabilities to money laundering schemes
- Implement effective controls to prevent the misuse of their services, such as enhanced due diligence on customers and suppliers
Regulators and law enforcement agencies should also:
- Continue to collaborate with international partners to share information and best practices in combating financial crime
- Enhance their monitoring and investigation capabilities to detect and prevent money laundering schemes
Any Other Relevant Information
This operation highlights the importance of international cooperation in combating financial crime. The use of a JIT at Eurojust facilitated the sharing of information among authorities, which was critical in dismantling this sophisticated money laundering scheme.
The freezing of EUR 27 million in cryptocurrencies also demonstrates the effectiveness of using digital currencies to track and seize assets linked to financial crimes.
As the financial landscape continues to evolve, it is essential for businesses, regulators, and law enforcement agencies to remain vigilant and adapt their strategies to prevent and combat new forms of financial crime.
