05 December 2019

EBF: More than 650 banks support global action against money laundering

Law enforcement authorities from 31 countries, supported by Europol, Eurojust and the European Banking Federation, have stepped up their efforts to crack down on money mule schemes that rope in victims often unaware that the money they are sending is part of an elaborate money laundering scheme.

The fifth European Money Mule Action (EMMA 5) will conclude after a three-month operational period resulting in the identification of 3833 money mules alongside 386 money mule recruiters, of which 228 were arrested, 1025 criminal investigations were open, many of them are still ongoing. More than 650 banks, 17 bank associations and other financial institutions helped to report 7520 fraudulent money mule transactions, preventing a total loss of €12.9 million.

Says Wim Mijs, CEO, European Banking Federation:

“The EMMA campaign has seen incredible results every year and shows the success of our cooperation with law enforcement. People need to realise that by becoming a money mule they become part of organized criminal networks. They should also know they will be prosecuted accordingly.”

Money mules, unlike their drug-trade counterparts, are not shuffling illicit goods over a physical border. Instead, they take part – often unknowingly – in money laundering activities by receiving and transferring illegally obtained money between bank accounts and/or countries.

Recruiters of money mules are coming up with ingenious ways to lure in their candidates. This year, cases involving romance scams were reported on the rise, with criminals increasingly recruiting money mules on online dating sites, grooming their victims over time to convince them to open bank accounts under the guise of sending or receiving funds. Criminals are also more and more turning to social media to recruit new accomplices through get-rich-quick online advertisements. This technique is particularly popular when it comes to targeting students and young adults.

Even if money mules act unwittingly, they are committing a crime. Law enforcement will turn first to whoever’s name features on the bank account, and the legal consequences can be severe. Depending on the country’s legal framework, mules may face lengthy imprisonments and acquire a criminal record that could seriously affect the rest of their lives, such as never being able to secure a mortgage or open a bank account.

Full joint press release on EBF

© EBF