Senate Report Reveals Alarming Scale of Money Laundering in France
A Senate report reveals France's money laundering problem is costing between €38 billion and €58 billion annually, with only 2% recoverable by authorities.
Key Points
- • Money laundering in France estimated at €38-58 billion yearly.
- • Only 2% of laundered funds are seized by authorities.
- • Senate calls for improved coordination and resources to combat laundering.
- • Emerging threats include cryptocurrency misuse by criminal organizations.
A recent Senate report has exposed that money laundering in France is estimated to range between €38 billion and €58 billion annually, a staggering figure that highlights the challenges facing authorities in combating this illicit trade. The report, titled "Ces dizaines de milliards qui gangrènent la société," indicates that only about 2% of the laundered sums are successfully seized by the state, pointing to a significant failure in the current financial crime-fighting framework.
Using data from the United Nations Office on Drugs and Crime (UNODC) and the European Court of Auditors, the report notes that money laundering activities could represent 2% to 5% of the global GDP, equating to approximately €58 billion in France alone. Furthermore, the report discusses how criminal organizations are increasingly utilizing neo-banks and cryptocurrencies due to their opaque nature, enabling them to infiltrate the legitimate economy, thus complicating enforcement efforts.
The findings underline a persistent lack of coordination among various agencies tasked with combating money laundering, allowing criminal activities to flourish. The Senate committee highlighted that organized crime generates nearly €50 billion yearly, with most of it remaining outside the reach of law enforcement. To address this, the report advocates for a better integration of financial aspects at the onset of investigations and calls for enhanced resources for specialized units.
Internationally, the report urges an increase in the involvement of liaison magistrates at embassies to facilitate judicial cooperation. Additionally, it outlines the establishment of a new European authority to combat money laundering, expected to be developed by 2024, although its operationalization will take several years.