FIOD 2021 Annual Report, Financial and fiscal studies in a digital, international world

Release Date 22-01-2022, 5:30 p.m.

In 2021, FIOD has achieved good results in detecting economic and fiscal crime, which is becoming increasingly digital and international. The use of smart technology and data analysis, in addition to and in combination with traditional exploration work in various partnerships, has proven to be crucial for the approach. FIOD is very close to fraud with cryptocurrencies, and abuse of corona support measures has been largely prevented at the source. Tackling organized and subversive crime requires perseverance. The discovery of money laundering and shortcomings as a gatekeeper has led to high transactions.

FIOD completed more than 900 criminal investigations in 2021, 321 of which were at the instigation of foreign partners. FIOD investigations have resulted in a total of more than € 520 million in transactions for the state. Studies focus on effective cases. FIOD carries out its social task with high-quality crime prevention.

crypto

Criminal organizations are increasingly using digital platforms to commit their crimes. Organized crime continues to digitize the money laundering process and uses cryptocurrencies, crypto service providers and international money laundering schemes to move value around the world at lightning speed.

Police have given FIOD access to large amounts of decrypted crypto data. FIOD extracts data on criminal cryptocurrency from this: criminal money that moves through the digital world and finds its way to the legal upper world. With smart technology and thorough investigative work from our investigators, FIOD examines a lot of financial data from decrypted PGP phones. This knowledge led to new criminal investigations and has been used to accelerate and strengthen ongoing investigations. More than 25 million euros in cryptocurrencies were recently seized in a combination of criminal investigations. It is volatile criminal cash flows in unprecedented amounts that travel around the world in a split second. In order to intervene effectively, a permanent investment in people and resources is necessary. This can be achieved by joining forces and cooperating with the prosecution, the police and other public and private parties at home and abroad. This must be continuously developed. This dynamic field of work is evolving rapidly, and FIOD is committed to remaining active in this development.

With the decrypted crypto data, FIOD will in the coming years be able to seize digital criminal assets so that they no longer circulate in society and can carry out its subversive work there. The bill ‘not conviction based confiscation‘(NCBC), will also help with that. This law allows criminal assets and illegally acquired goods to be taken without prior criminal conviction.

COVID scams

Also in 2021, FIOD focused on criminal investigations into fraud with protective equipment, trafficking in counterfeit corona-free statements, and combating the misuse of support measures such as Fixed Charges Allowance (TVL). FIOD expects that fraud with corona support measures will continue to require attention due to the continuation of the corona pandemic, and that action will continue to be taken against persons abusing the pandemic.

Aid fraud cannot be solved by criminal law alone. In addition to sharing results from completed criminal investigations, FIOD has therefore also focused on recognizing patterns in the methods and techniques that criminal organizations use to commit aid fraud. Using anonymized digital data, these patterns can be built and shared with lawmakers, policy makers and regulators. Strengthening rules and supervision is important to prevent fraud. In combination with a targeted use of the penal code, it prevents public funds from ending up in the pockets of criminals. FIOD and other partners in the chain have successfully done so to limit possible fraud with the TVL scheme.

Money as a weapon for subversive crime

Organized crime uses services from the legal world to move value and money around the world. This is done through complicated constructions, where it is not immediately clear where exactly money comes from or where it is deposited. Accumulation of large amounts of criminal money leads to undermining, violence and feelings of insecurity in society. Money laundering is used to fund other crimes, tax evasion and creates unfair competition for honest entrepreneurs.

In the fight against this subversive crime, cooperation is crucial. FIOD works with regional and national government partners, but also with private parties and in an international context, time and time again in varying composition depending on the task.

In dealing with financial undermining, FIOD focuses on disrupting criminal business processes and confiscating criminal assets. FIOD uses its financial and tax expertise to monitor cash and cash flows. So can facilitators of economic criminal activities are tracked down and criminal money is stolen.

In the fight against subversive crime, shared sharing, analysis and use of data is an important pillar. The possibilities for this are currently fragmented and complex, and a solid legal basis promotes effective cooperation in tackling serious forms of crime. A solid legal framework also provides guarantees for the proper protection of personal data. In this sense, FIOD looks forward to the further parliamentary consideration of the Bill on Data Processing by Partnerships (WGS).

Transactions

In 2021, FIOD’s investigative work led to a transaction with a major Dutch bank for several years of structural breach of the Money Laundering and Terrorist Financing (Wwft) Act. Together with two other bribery transactions and misinformation by the tax authorities, this has given the Treasury more than € 520 million in the past year.

Technology and innovative collaboration as Game changer

Implementing technology and data and various collaborations in targeted compositions is a real one Game changer in the fight against crime. By investing, the government recognizes the importance of this in detecting and tackling subversive crime. Investments are needed to continue to innovate in detecting and tackling financial and tax crime, which is increasingly taking place in the digital, international world.

For information: Wietske Visser, 06 – 18 60 77 61

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