By AML Intelligence Correspondent
Human traffickers are increasingly using virtual assets and cryptocurrencies to launder illicit finance, Europol has warned.
In a new report, the EU’s law enforcement agency examined “the latest developments and main threats” in migrant smuggling and trafficking.
The report was prepared by Europol’s European Migrant Smuggling Centre (EMSC), which was established in 2016 in response to the surge in migrants travelling to Europe from 2015 onwards.
It found that “technology and the online environment” have become integral to the business models of criminal networks active in migrant smuggling.
“Criminals rely on mainstream social media platforms to advertise their services and recruit facilitators, irregular migrants and [trafficking] victims,” it said.
“Instant messaging applications are often used as a second step, to exchange operational details in a safer environment.”
The report said that cryptocurrencies are used by human traffickers “to collect, move and launder illicit profits”.
“While cash payments still prevail as the preferred means of payment in migrant smuggling, cryptocurrencies are becoming more popular among migrant smugglers as well,” it said.
“The use of cryptocurrencies enables criminals to go undetected when receiving smuggling fees and paying commission to drivers.”
Europol also said that this can be complicated further by Hawala systems – informal value transfer systems based on a large network of money brokers operating outside of the traditional banking system.
“Traditional Hawala systems in conjunction with cryptocurrencies allow smugglers to exploit both modern and traditional methods to launder profits, while maintaining a higher level of anonymity,” the report found.
Europol said that EMSC experts work together with specialists to monitor online activities related to migrant smuggling.
“Moreover, the EMSC regularly participates in larges cale exercises to scan the online environment for signals of [trafficking], to generate investigative leads and good practices,” it said.
Europol said that in 2023, the organisation Europol supported 223 operations against migrant smuggling and human trafficking networks.
During the year it also provided national law enforcement authorities with over 1,200 operational reports to advance their investigations.
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