Hungarian Police Bust Major Money Laundering Ring
Hungarian police have made a significant breakthrough this week, claiming to have dismantled a major organized crime gang responsible for laundering tens of millions of euros. Supported by Europol, the Budapest Metropolitan Police conducted raids on 24 homes in early May, leading to the interrogation of 16 suspects and the formal arrest of five individuals who have now been placed in pre-trial custody.
During the raids, officers seized funds in 32 countries across Europe, Australia, and South America. In addition to €140,000 ($150,000) in cash, they also confiscated a “high-end vehicle,” large quantities of mobile phones, SIM cards, storage devices, payment cards, weapons, ammunition, and jewelry.
It is believed that at least 44 individuals were involved in the money laundering scheme, with 10 orchestrating the operation and the rest acting as mules who used their accounts to withdraw and transfer funds. The network, which is thought to have been active since September 2020, has been linked to at least €44m ($47m) in laundered funds, with an additional €5m ($5.4m) traced back to criminal activities such as fraud.
According to Europol, the investigation revealed that the criminal network had established numerous companies with no legitimate economic activities and had purchased others using strawmen. These companies were used to open bank accounts as part of a money laundering scheme, through which funds from various illegal activities were transferred to conceal their origins.
While this recent success is a significant win for law enforcement, it is just one battle in the ongoing war against money laundering. Last December, European authorities arrested 1800 suspected money mules in an operation that reportedly prevented losses of €70m ($79m). Despite these efforts, the underground industry of money laundering continues to thrive, with estimates suggesting it could account for as much as 5% of global GDP.
Law enforcement agencies have warned that the economic challenges brought about by the pandemic have pushed many individuals into acting as money mules, highlighting the need for continued vigilance and coordinated efforts to combat financial crime.