Stepping Up the Fight Against Illegal Activities: Black Market Work, Financial Crime, and Drug Trafficking
Urging a stern response against underground labor and financial illegality, Klingbeil calls for enhanced measures. - Urgent call for increased action against illegal labor practices involving black workers and financial wrongdoing, emphasized by Klingbeil.
Last year's sting by custom authorities led to a whopping 97,000 criminal proceedings and 50,000 administrative offense proceedings related to undercutting labor laws and illegal employment. The authorities estimated the financial damage at a staggering 766 million euros. "Customs doesn't tolerate undercutting labor laws," Klingbeil asserted, emphasizing the crucial role customs authorities play in preserving Germany's economy and security.
In the realm of narcotics, the customs authorities initiated around 10,000 investigations last year. Across Germany, about 32 tons of drugs, mainly cocaine, were confiscated, along with 205 million smuggled cigarettes.
The Customs and Finance Union alleged that relentless cost-cutting measures have weakened customs, despite an increased workload. To secure a future-proof customs force, the union calls for a rapid digital transformation and better resource allocation – a price tag of "a security billion" has been proposed.
Financial crimes and illegal employment have become significant areas of focus for customs authorities. In the realm of financial crimes, regulations like the 5th Anti-Money Laundering Directive (5AMLD) have expanded the circle of regulated entities to include virtual currency exchange services and art dealers. Financial institutions undergo stringent AML requirements, including thorough customer due diligence, transaction monitoring, and reporting suspicious activities. Violations can lead to hefty fines, as seen in the 2024 fine for AML breaches.
In the battle against undercutting labor laws, fraud prevention measures involving AI-supported analyses, plausibility checks, and sanctions lists are used to thwart fraudulent activities in granting funds. Know Your Customer processes ensure legally compliant identity verification, with thorough background searches to identify corporate structures and beneficial owners. Regular training is offered to early detect and prevent suspicious cases.
As for improving customs operations, while specific strategies are unavailable, greater technology usage, intelligence sharing, and international cooperation are pivotal in combating illicit trade and financial crimes.
Political leaders, such as Lars Klingbeil (SPD), underscore the necessity of robust legal frameworks and effective enforcement mechanisms to combat financial crime and black market activities.
- The customs authorities have been focusing on financial crimes, implementing stricter Anti-Money Laundering (AML) regulations for virtual currency exchange services, art dealers, and financial institutions, ensuring thorough customer due diligence, transaction monitoring, and reporting of suspicious activities.
- In their efforts to combat illegal employment, customs authorities employ AI-supported analyses, plausibility checks, and sanctions lists to prevent fraud, rigorously enforcing Know Your Customer processes for identity verification, and providing regular training to detect and prevent suspicious cases, as advocated by political leaders like Lars Klingbeil.
