Wednesday

31st Aug 2016

Financial crisis is boom time for mafia

  • Grasso: 'They've got liquid cash, they've got ready money ... and not just in Europe' (Photo: wikipedia)

Struggling banks in the EU and beyond are becoming more willing to launder dirty cash for organised crime.

Italy's anti-mafia prosecutor Pietro Grasso drew attention to one of the lesser known aspects of the crisis at a hearing in the European Parliament's new anti-mafia committee on Tuesday (19 June).

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

He told press: "The current economic crisis is making criminal groups even more powerful because they've got liquid cash, they've got ready money ... and not just in Europe, but in other countries where there are fragile economies and they can influence politicians."

His line was echoed by Jean-Francois Gayraud, the chief superintendent of the French police.

"What we've seen in Europe is widespread criminalisation of financial structures in the internal market," Gayraud said.

The phenomenon poses an "existential question" for some countries where it has "transformed" both national politics and financial markets, he added.

The observations are not entirely new.

Antonio Maria Costa, the former director of the UN's anti-organised-crime bureau, the Vienna-based UNODC, wrote in his blog in April last year: "Money from drug traffickers injected into the financial system has saved the banks from the financial crisis."

The Paris-based criminologist, Michel Koutouzis, who carries out investigations for the UN and for EU institutions, noted in May in his new book - Crime, Trafficking and Networks - that organised crime is increasingly investing in sovereign bonds.

The EU parliament committee is planning to flesh out ideas for a new European Commission "action plan" for EU-level counter-measures.

But for Koutouzis the creation of the committee is itself part of the problem.

"The authorities' preferred approach is to observe, to study, to create committees and new institutions. They already know what's happening. But no one wants to take action," he told EUobserver.

He gave as an example his own work for the UN on counterfeit medicines.

"I went to dozens of meetings in Vienna and in Geneva where officials said: 'It's so complicated. We don't know who's responsible' ... But one day after getting off the plane in India, I was standing inside a counterfeit medicine factory with a hidden camera."

Meanwhile, the EU institutions themselves are not immune to corruption.

Belgian police in 2007 arrested two Italian nationals - a European Commission official and an EU parliament assistant - on suspicion of taking bribes from an Italian businessman in return for contracts for EU projects in Albania and India

Giovanni Kessler, the head of the EU's anti-fraud office, Olaf, on Tuesday noted that organised crime accounts for about 40 percent of the "financial damage" wreaked upon the EU budget.

"This trend is increasing," he said.

Stakeholders' Highlights

  1. EBECBright Engineering Students Designed the Future, Today at the BEST Competition
  2. Access NowInternet wins! Net Neutrality Victory in EU
  3. EuridThe 2016 .eu Web Awards is a Chance to Make Dreams Come True so Vote Today !
  4. Nordic CouncilNordic-Baltic Co-operation Vital in Turbulent Times
  5. GoogleBrussels: Home of Beer, Fries, Chocolate and Google’s Policy Team - follow @GoogleBrussels
  6. HuaweiSeeds for the Future Programme to Bring Students to China for ICT Training
  7. EFASpain is Not a Democratic State. EFA Expresses Solidarity to A. Otegi and EH Bildu
  8. UNICEFBoko Haram Violence in Lake Chad Region Leaves Children Displaced and Trapped
  9. HuaweiMaking Cities Smarter and Safer
  10. GoogleHow Google Makes Connections More Secure For Users
  11. EGBAThe EU Court of Justice Applies Proportionality in Assessing Gambling Laws
  12. World VisionThe EU and Member States Must Not Use Overseas Aid for Promoting EU Interests

Latest News

  1. Verheugen went off-script in VW cheat testimony
  2. Poland may remove constitutional judges
  3. Spain's Rajoy faces uphill battle to win MPs' support
  4. Russia and Turkey restart talks on EU gas pipeline
  5. MEPs call for reconciliation with Turkey
  6. Egypt blames EU-Turkey deal for refugee spike
  7. EU dithering aggravated refugee crisis, Merkel says
  8. Verheugen did not think VW cheating was morally possible