Hungarian Police Bust Major Money Laundering Ring
Hungarian police have made a significant breakthrough this week by dismantling a major organized crime gang involved in money laundering operations worth tens of millions of euros. With the support of 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 been placed in pre-trial custody.
During the raids, law enforcement officers seized funds in 32 countries across Europe, Australia, and South America. In addition, they confiscated €140,000 ($150,000) in cash, a luxury vehicle, a significant amount 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 illicit funds.
The criminal network, which has been active since September 2020, has been linked to the laundering of at least €44 million ($47 million), with an additional €5 million ($5.4 million) traced back to criminal activities such as fraud. Europol disclosed that the suspects set up several companies with no legitimate business activities and acquired others through the use of strawmen. These companies’ bank accounts were then used within a complex money laundering chain, receiving transfers from accounts in different countries, often originating from invoice fraud or cryptocurrency scams.
Last December, European authorities arrested 1800 suspected money mules in an operation that reportedly prevented losses of €70 million ($79 million). Despite occasional successes in combating money laundering, the underground industry continues to thrive, estimated to be worth as much as 5% of global GDP. Law enforcement agencies have expressed concerns that the economic hardships caused by the pandemic have driven many individuals to engage in illicit activities such as serving as money mules.
The crackdown on the Hungarian organized crime gang marks a significant victory in the ongoing battle against financial crime. Authorities remain vigilant in their efforts to disrupt illicit networks and safeguard the integrity of the global financial system.