Category: EPPO

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Eurojust leads efforts to step up judicial response to Money Laundering and Asset Recovery

Source: Eurojust

The second Eurojust Meeting on Money Laundering and Asset Recovery brought together dedicated prosecutors specialised in asset recovery and tackling money laundering from the European Union and countries with liaison prosecutors at Eurojust. Other participants included the European Commission (DG FISMA, DG HOME, DG JUST, and DG ECFIN), Europol, EPPO, EJN, CARIN network, INTERPOL, the Council of Europe (MONEYVAL), as well as representatives from Asset Recovery Offices and Asset Management Offices.

Eurojust Vice-President Margarita Sniutyte-Daugeliene stated in her opening remarks: In 2023 alone, Eurojust’s assistance in the fight against organised crime led to seizing or freezing of EUR 1.1 billion. Money laundering remains in the top three of crime types Eurojust deals with every year. Fighting money laundering and recovering assets will therefore remain a top priority, and in months to come Eurojust will offer further means for closer cooperation between the judiciary, law enforcement and other actors involved across the European Union.

The meeting was an opportunity for participants to share experiences in relation to matters such as money laundering as a service, the misuse of Hawala (a type of informal money or value transfer service often used by criminals to launder money) and underground banking, and misuse of cryptocurrencies as money laundering schemes, issues related to predicate office. Participants also shared experiences in relation to asset recovery matters such as restitution and compensation of victims, asset sharing and disposal, exceptional costs and non-conviction based confiscation. Eurojust’s support on these cases was highlighted throughout the presentations. Participants highlighted the importance of increasing cooperation in this field.

Participants confirmed their strong support to the set up of a dedicated Judicial Focus Group on Money Laundering and Asset Recovery, organised by Eurojust, and discussed possible mandate and tasks of the Judicial Focus Group. The Judicial Focus Group would be composed of prosecutors or judges who would represent a multidisciplinary hub of experts at national level involved in the investigation and prosecution of money laundering and asset recovery, such as asset recovery offices, asset management offices, law enforcement, financial intelligence units, financial accountants, crypto experts. The Focus Group would give judicial authorities guidance on specific matters such as post-conviction financial investigations, exceptional costs concerning the execution of freezing and confiscation orders, and guidance on restitution to or compensation of victims. Eurojust is uniquely placed to bridge the gap between the national hubs by creating this international platform represented by the judiciary.

Money laundering and asset recovery are a high priority on the EU agenda. Since the last expert meeting in June 2023, a number of legislative proposals have been adopted, including the Directive on Asset Recovery and Confiscation, the Directive on the Violation of Union of restrictive measures and on the Anti-Money laundering package.

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Eurojust supports an EPPO-led operation against carousel VAT fraud for the first time

Source: Eurojust

During the searches, law enforcement seized vast quantities of smartphones, worth more than EUR 15.3 million, as well as a yacht, worth EUR 3 million, and EUR 1.2 million in cash and cryptocurrency. Several luxury cars, jewellery, luxury watches and 2.5 kg of gold were also found.

The suspects are being investigated for large-scale cross-border Missing Trader Intra-Community (MTIC) fraud involving the trade of electronic goods and protective face masks through companies based in several European countries. MTIC fraud is the theft of value-added tax (VAT) from a government by organised crime groups. The perpetrators are believed to have defrauded up to EUR 195 million through several criminal schemes. Most of the VAT damage was caused in Sweden, where the missing trader companies were based.

Eurojust supported two investigations targeting the same crimes, one led by the EPPO and a second one led by the Swedish authorities. The EPPO investigation targeted the two managers and shareholders of a German distributor company that was acting as an in/out buffer/conduit company in the fraud chain. It purchased and sold mobile phones to other companies in several countries, which were then sold to the Swedish missing trader companies. Eurojust was instrumental in identifying ongoing linked investigations in Sweden, targeting the individual behind the Swedish missing trader companies.

The case was opened at Eurojust in 2021 at the request of the German European Delegated Prosecutor. Eurojust facilitated the cooperation between the EPPO and Sweden, Denmark, Hungary and Poland – all EU Member States that do not participate in the EPPO – and the United Kingdom. Eurojust can support cross-border cooperation in EPPO cases that involve countries that do not participate in the EPPO. The Agency also facilitated cooperation between Sweden and Malta.

The Agency hosted seven coordination meetings to facilitate judicial cooperation between the EPPO and the national authorities involved in the case. Eurojust facilitated the exchange of information and the execution of several European Investigation Orders and European Arrest Warrants.

During the action day, a coordination centre was set up at the EPPO premises in Luxembourg, for the first time jointly with Eurojust. The Eurojust coordination centre focused in particular on coordinating the execution of the Swedish measures in Malta.

In the run-up to the action day, Europol provided analytical support to the partners in this investigation. Furthermore, Europol supported the action day by providing over 100 secure communication channels (VCP – Virtual Command Post), and by deploying a specialist with a mobile office to the operational command centre at EPPO’s headquarters in Luxembourg.

Eurojust and the EPPO signed a Working Arrangement in February of 2021 to facilitate cooperation between the Agency and the EPPO.

The following authorities took part in this investigation:

  • Germany: German Tax Investigation Offices in Berlin, Bielefeld, Cottbus, Münster and Nuremberg; Police Headquarters from Nordhessen and Brandenburg; State Criminal Police Offices from Brandenburg and Berlin;
  • Malta: Malta Police Force – Financial Crimes Investigation Department and International Relations Unit;
  • Poland: Circuit Prosecutor’s Office in Warszawa and Zamość; Police Headquarters in Warszawa and Zamość;
  • Sweden: Swedish Economic Crime Authority.