Europol Releases First Financial and Economic Crime Report

Europol has published its first-ever threat assessment report on financial and economic crimes, highlighting that more than 70% of criminal groups in the European Union use money laundering techniques to proceed with their crimes. 

According to the assesment, 70% of criminal networks operating in the EU are using money laundering to proceed with their illegal activities and to conceal their assets. According to Europol, money laundering activities from EU criminal networks affect the integrity of the global financial system by creating an underground economic gateway.

Europol stated that 80% of criminal networks misuse the EU business legal structure to conduct unlawful activities. Catherine De Bolle, Europol’s executive director, stated, “Organised crime has built a parallel global criminal economy around money laundering, illicit financial transfers and corruption. With modern technology, they have diversified their modi operandi to evade detection.” About the report, she added, “It serves as a roadmap to foster cooperation that will derail the world of criminal finances, intercept illicit profits, and – above all else – make Europe safer.”

The research emphasised how the local criminal activity circulates, with players frequently headquartered outside of the EU bloc. This report also warned about advanced techniques criminals use to exploit geopolitical developments. European Commissioner for Home Affairs, Ylva Johansson, addressed, “This report sets out the increasingly sophisticated methods of organised crime and the European law enforcement successes in fighting back. If EU member states work together even closer on this fight, we can achieve great results.”

Asset recovery is one of the most effective strategies to combat financial crime, yet according to Europol, police only seize 2% of the estimated annual income of criminal syndicates in the EU.

By combining operational insights and strategic intelligence that Europol’s partners and EU member states provided to the agency, Europol established the report on all financial and economic crimes that affected the EU, including money laundering, corruption, fraud, business verification, cryptocurrency scams, and forged documents. 

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