The governments of Poland and Belarus have exposed a large-scale transnational tobacco smuggling operation. (Photo: Europol, Licence) The suspects were already being investigated for drug trafficking in the Netherlands, Spain and the United Kingdom, Europol reported on Monday.
In addition to uncovering evidence of the traffickers’ coin laundering operation, police also controlled the capture of silver and gold bars, luxury vehicles and abundant amounts of coins in various currencies. Overall, the total price of the seizures made amounted to approximately two million euros ($2. 1 million).
About two hundred Polish law enforcement officials were present to carry out the arrests and seizures.
Information provided through the corrupt intelligence firm revealed that the conspirators’ tobacco smuggling network existed to fund other facets of their overall operation. Europol has reported what other illicit activities the organization is suspected of being involved in, in addition to drug trafficking.
Traffickers have basically used investments in real estate and cryptocurrencies to launder their illicit proceeds, Europol said.
The illicit tobacco industry is one of the main participants in excise fraud in the EU. It deprives Member States of valuable tax revenues that would differently finance public facilities such as education, health and asset development.
As in this case, it is also used to finance other organized crime activities that pose a greater risk to public protection and national security.
A 2022 KPMG study found that in 2021, Europe fed on 35. 5 billion counterfeit and smuggled cigarettes; An accumulation of 3. 9%, or $1. 3 billion, from last year. This resulted in a loss of 10. 4 billion euros ($11 billion) in tax benefits on the continent; A marked increase of 22%, or 1. 9 billion euros ($2 billion) from last year.
KPMG found that around 8. 1% of all cigarettes consumed in Europe that year were manufactured illegally or smuggled.
At least in Poland and Belarus, illegal cigarette smoking fell by 1. 4 billion and 1 billion, respectively, from last year.
The study notes, however, that border closures caused by the COVID-19 pandemic are likely to have influenced the decline in overall consumption figures, as is the case in almost all cross-border markets, and that the figures remain to be seen. 2022 can also simply be built accordingly.
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