Money Laundering in Germany

Presentation Overview • Introduction: Pecunia non olet? • Again: Why Germany? Key-point: Legislation •Facts & Figures •So…what to do?

Why is money laundering so widespread? a)Competent authorities are not aware of (and cannot prove) the illicit origin of the capitals b)The dangerousness of money laundering is underestimated (in an attempt at taking advantage of it) by businessmen, politicians, etc. Pecunia non olet (really?)
Money Laundering in Germany Why Germany? •Same reasons already considered •Legislation is probably the most important «If I were a Mafioso, I myself would invest money in Germany» Roberto Scarpinato, anti-Mafia Prosecutor

The Leaks in the German Anti-money Laundering Legislation

•Fragmentation and no clear competences BKA/LKA Ministry of Interior/Ministry of Finance Not homogenous legislation among Länder  i.e. Bavaria is “better” than Saxony (Jürgen Roth)

«Shortly after the Duisburg murders, Italian officers and journalists believed there were Italian mafia structures in the federal region of Saxony. The criminal department of Saxony (LKA) came out with a press statement on 16th August 2007, which was uncritically published by the region’s media. According to the statement, there were several Italian nationals living in the region and one could not exclude that among them there might be some belonging to mafia clans

But one could not know for sure or jump into conclusions about connections between Italians living in Saxony and Italian criminal organisations, insisted the LKA. Simultaneously, the Public Prosecutor’s office made a statement to the newspapers clarifying that nothing else had been detected since 2006. This official statement strongly contradicted the federal criminal entities and the federal office for the protection of the constitution in Saxony,

who designated Leipzig as an important stronghold of the San Luca clan. Italian mafia experts had information that Camorra as well as Cosa Nostra had established during the last years a large network in Germany. Camorra would be active mainly in the drug and money laundering business, but also in racketing, especially in Italian cafés, restaurants, fashion companies and their subsidiaries»
Jürgen Roth, Organised Crime in Germany, in «Bright», 1st of March, 2010

Burden of proof reversion (crucial) «Sebastiano Romeo (member of the Clan Nirta-Strangio of ‘ndrangheta, charged with the life imprisonment for the Massacre of Duisburg) arrived in Germany, worked as “pizzaiolo” in Duisburg and then, suddenly, bought a Pizzeria for 60.000 euros» Petra Reski, in an interview to Antimafia Duemila, 2nd of April, 2009

•Telephone tapping ( CULTURE) •Confiscation of proceeds of crime Framework Decision 2006/783/JHA Recent developments

«German laws (…) are inadequate and former Chancellor Helmut Kohl is responsible. In order to help Eastern Germany recover after the fall of the Wall, he allowed, de facto, any illicitness, lacking adequate measures to ensure the application of the laws. And the situation did not better either with Schröder or Merkel » «Capital», cited in Chantal Cresta, Lavanderia Germania, il paradiso della malavita è tedesco, in, 25 of February, 2012.

«There are, say, “pizzaioli”, who come to Germany, earning 800 Euros a month and they are able to buy a hotel or whole streets! Too many people here closed their eyes with respect to the investments of Mafia, and they still behave in this way» Petra Reski, in an interview to Antimafia Duemila.

Facts & Figures

●BND (German Intelligence): the Mafia has bought assets at the Frankfurt Stock Exchange (specifically, those of the Gazprom) • The Gazprom is part (with E.ONRuhrgas and Siemens) of the North Sea Pipeline, a consortium for the construction of a pipeline in the North Sea, whose President is Gerhard Schröder

•The ‘Ndrangheta invested over 90 millions Euros for buying hotels, apartments, etc., above all in Turingia, Saxony and on the North Sea •“Affaire Di Girolamo”: over 2 billions Euros were laundered in Germany over the years

•OECD + FATF (cited by Financial Times Deutschland): 43-57 billions Euros laundered in Germany by the Mafia every year German authorities manage(d?) to confiscate just the 0,5% (170 millions compared to 1,3 billions in Italy!) Germany is the first country in Europe as to the amount of money laundered

«Money laundering activities were the specialty of the big clans of the Secondigliano Alliance (Naples) and Casalesi (Caserta), who were helped by their main contacts in the industrial regions of Germany. Among these are, according to officers, the cities of Berlin, Dortmund, Frankfurt, Hamburg, Hannover, Köln, Mainz, Munich, Stuttgart and Wiesbaden.
Money Laundering in Germany with no access to roger cpa discounts and promo codes, became prevalent.In this context, Security Officers refer to an “invasion of Germany by the largest and most dangerous mafia cartels of Caserta, the Casalesi”. About one fifth of the main members of the Casalesi are in Germany and in countries at the east border