Money laundering and tax evasion in EU Member States and the consequences on the EU: - extracts from the Hearing EP Special committee on organised crime, corruption and money laundering

Type: News   Reference: 93365   Duration: 00:04:38  Lieu: Brussels, Belgium - European Parliament
End production: 23/04/2013   First transmission: 23/04/2013
During a hearing, organised by the EP Special Committee on Organised Crime, Corruption and Money Laundering (CRIM), MEPs debated on money laundering and tax evasion in the EU Member States and the consequences on the EU. Money laundering means concealing the fact that money has been obtained illegally, or in the case of tax evasion kept illegally. Tax fraud and tax evasion is a multi-facetted problem which requires a coordinated and multi-pronged response. Aggressive tax planning is also a problem which requires urgent attention. These are global challenges which no single Member State can face alone.

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TIME DESCRIPTION DURATION
00:00:00 Title 00:00:05
00:00:05 Exterior view of the EP, Brussels 00:00:05
00:00:10 SOUNDBITE (German) Michael DEWALD, Bundeskriminalamt, DE "The majority of our cases are from the filed of finance, over 90%, if we include the credit institutions, that is the top line, that is 90%, if we take the financial institutions, that is the second figure." 00:00:12
00:00:22 SOUNDBITE (English) Damagoj MARGETIC, Investigation Journalist, Croatia "We had defence and development fund and this was a network of secret accounts abroad, mostly in Austria, which where held by governmental officials and the money in these accounts was actually paid from Croatian emigrants in Europe, Australia and United States. They donated their sources to Croatia for development and defence during the 90s, but this money was actually misused. It was transferred to secret accounts, mostly in Austria, first in Erste Bank and some other banks and at the end this money was transferred in secret accounts in Hypo Group Alpe Adria based in Klagenfurt." 00:00:45
00:01:07 SOUNDBITE (English) Damagoj MARGETIC, Investigation Journalist, Croatia "Then we had public companies. These were state-owned companies, which were actually used as secret bank accounts of the Government officials and ruling party officials. They just took the money from the public companies whenever they wanted and transferred literally billions of kunas from public companies during the years to secret accounts abroad and then controlled it as black accounts network." 00:00:30
00:01:37 SOUNDBITE (English) Damagoj MARGETIC, Investigation Journalist, Croatia "On the other hand we had black funds, secret funds, which were actually money from criminal activities controlled by the Government, in which the Government was involved. This was arms smuggling, oil smuggling, cigarettes smuggling, drugs smuggling, garbage and toxic waste smuggling. Here they had billions of Euros transferred to secret accounts in corrupted relation between the Government and organised crime chiefs and mafia bosses in Croatia." 00:00:42
00:02:19 SOUNDBITE (English) Damagoj MARGETIC, Investigation Journalist, Croatia "At the same time while people were killing each other, destroying their homes to each other, both Tuchman and Milosevic had joined bank investments in Europe. To mention some of the examples, it was Banque Franco-Yugoslave in Paris and the Yugoslav Bank Limited in London. They jointly held these banks as co-owners and transferred the dirty money stolen from their countries to the secret accounts in these banks. In the end, at the mid of '90s, when the Hague Tribunal started their investigation, this money from these banks was also transferred to Hypo Alpe Adria Group to cover it up and to money launder it through credit operations. " 00:00:50
00:03:09 SOUNDBITE (English) Brigitte UNGER, Professor of Public Sector Economics, Utrecht University "Money laundry has also extended in scope enormously - I called it from Al Capone to Al Qaeda - because it originally was meant for drugs money and then, the enormous speed included corruption, terrorist financing and now we are tax crime and proliferation of weapons, so it gets very broad, it covers more and more issues." 00:00:21
00:03:30 SOUNDBITE (English) Brigitte UNGER, Professor of Public Sector Economics, Utrecht University "Fraud is a predicative crime and three of the countries, in Germany, Austria, but only for business and criminal organisations, so private tax fraud would not be there. Tax evasion explicitly will only be, for example, a miss demean in the Netherlands, it would not be a serious crime, and therefore it could not be prosecuted for money laundering. What was clear to mu is that we have to make sure it is tax fraud, because a fraud is now a predicate crime in most countries for money laundering. Is it a tax crime, because a crime is clearly a crime? Is tax evasion also a tax crime or not in each country is not clear." 00:00:41
00:04:11 Cutaways (7 shots) 00:00:27
00:04:38 END 00:00:00
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