17 providers of criminal banking services arrested

Major Takedown of Criminal Parallel Banking Network Shakes Europe’s Illicit Financial Infrastructure

In a coordinated international operation supported by Europol, law enforcement authorities across Austria, Belgium, and Spain have dismantled a sophisticated criminal parallel banking network that facilitated millions in illicit financial transactions for organized crime groups involved in migrant smuggling and drug trafficking. The operation, conducted on 14 January 2025, culminated in the arrest of 17 individuals and the seizure of assets worth over EUR 4.5 million.

This action marks a significant milestone in the ongoing efforts under the European Multidisciplinary Platform Against Criminal Threats (EMPACT) cycle, which targets the most pressing forms of serious and organized crime affecting the EU.

From Migrant Smuggling to Money Laundering: A Web of Crime Unraveled

The investigation into the parallel banking network began as a follow-up to two earlier operations against migrant smugglers, reported on 4 July and 13 August 2023. During those investigations, authorities uncovered digital evidence pointing to the involvement of a separate financial infrastructure used by these smugglers to move illicit funds across borders without detection.

Europol’s experts in financial crime worked alongside national investigators to trace these leads, eventually identifying a sprawling money laundering organization with branches operating in multiple European countries. This group provided services such as hawala-style informal banking, cash courier transport, cryptocurrency exchange, and parallel banking—services typically used by criminal networks seeking to conceal the origins of their illegal proceeds.

A Transnational Network Catering to Criminal Markets

The arrested suspects, primarily of Chinese and Syrian nationality, are believed to have operated two distinct branches within the same network: one serving Arabic-speaking criminal groups and the other catering to Chinese-originated syndicates. These branches were not only compartmentalized but also deeply embedded in the underground economies of their respective client bases.

According to Europol, the network facilitated the movement of more than EUR 21 million in illicit funds. Its reach extended beyond its immediate operators, advertising services via social media platforms to attract an international clientele. This digital outreach allowed the organization to serve a wide range of criminal enterprises, including drug traffickers and human smugglers.

Massive Asset Seizures Reflect Scale of Operations

During the operation, authorities executed search warrants and made arrests across three countries. Of the 17 suspects detained, 15 were taken into custody in Spain, with one each apprehended in Austria and Belgium. The scale of the financial crimes was underscored by the volume and variety of assets seized:

• EUR 206,000 in cash
• EUR 421,000 frozen in 77 bank accounts
• Cryptocurrency valued at EUR 183,000
• Real estate properties totaling over EUR 2.5 million
• 18 vehicles worth approximately EUR 207,000
• Four shotguns and ammunition
• Phones, laptops, and other electronic devices
• Luxury items including watches, jewelry, and designer accessories

These seizures not only disrupt the current operations of the network but also send a strong message to other criminal actors who rely on such financial infrastructures to sustain their activities.

Europol’s Strategic Role in the Operation

Europol played a central coordinating role throughout the investigation and during the execution of the operation. Following the initial discovery of the network through phone data from the migrant smuggling cases, Europol’s Joint Cybercrime Action Taskforce (J-CAT) and financial crime units collaborated closely with national police forces.

On the day of the takedown, Europol provided operational support by deploying experts to all three countries involved. Three Spanish investigators were funded by Europol to travel to Belgium and Austria, while two Europol specialists were dispatched to each of those countries. In addition, two more experts were deployed to Spain to assist local law enforcement with technical and strategic guidance.

“Today’s operation is a testament to how effective cross-border cooperation can be when targeting complex financial crime,” said a Europol spokesperson. “By following the money trail left behind by migrant smugglers, we’ve managed to dismantle a key enabler of organized crime.”

Implications for Future Anti-Crime Strategies

The dismantling of this parallel banking network highlights the increasing sophistication of transnational financial crime and the growing reliance of criminal organizations on alternative banking systems outside traditional financial institutions.

“This case demonstrates how intertwined different forms of organized crime have become,” said Dr. Elena Martínez, a criminologist specializing in financial crime at the University of Leuven. “Money laundering doesn’t just fund crime—it sustains entire criminal ecosystems. Disrupting these financial lifelines is crucial to long-term security.”

As part of the EMPACT framework, law enforcement agencies across Europe are expected to intensify efforts to identify and dismantle similar structures. The success of this operation underscores the importance of intelligence-sharing, forensic analysis, and international coordination in the fight against organized crime.

Conclusion: A Blow to Organized Crime – But the Fight Continues

With 17 arrests and millions in assets seized, this operation represents a major victory for European law enforcement. However, officials caution that such networks often regrow or evolve into new forms if not fully eradicated.

“The battle against financial crime is never-ending,” said Europol’s Head of Operations. “But every time we take down a structure like this, we make it harder for criminals to operate freely.”

As investigations continue and more details emerge, this case will likely serve as a blueprint for future anti-money laundering operations across the continent.

The 17 individuals arrested are mostly of Chinese and Syrian nationality and are suspected of providing primarily money laundering services to criminals. This encompasses parallel banking services, illegal hawala banking, cash collection, cash courier services and the exchange of cryptocurrencies for cash. The money launderers were operational in at least two branches: one that catered largely to the Arabic-speaking criminal…

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