According to sources Dutch, German, British and Italian companies may have been implicated in defrauding on behalf of terrorist organizations during the period of 2008 to 2011.
In an article disclosed today by the Dutch site zembla.nl American special forces have found documents in 2010, in Osama Bin Laden’s cave, indicating a criminal network having used companies in Italy to steal for over 1 billion euro’s by not paying VAT and used it to fund terrorism.
The Dutch investigation Journalist, Sander Rietveld, stated on the Radio 1 in the Netherlands that a list of approximately 1200 companies exist that may have been involved in these VAT fraud practices. A closer look at the list reveals that a possible 26% of them are UK related.
How the VAT carousel fraud works is explained in this article from Corporate Watch. It also shows that Carbon trading and VAT fraud is not new and goes back to before 2010. In the UK in 2010, 81 premises were raided and 26 people arrested. The alarming part about the news today is where the money is going to.
In that Corporate Watch article is also mentioned that back in 2010 Europol has reported that France, the Netherlands, UK and Spain have all altered tax law on carbon credit transactions to prevent future VAT fraud.
According to the article in Zembla alterations have actually caused new networks to arise that used the altered tax laws to camouflage these fraudulent activities.
Strong indications exist of ingenious networks where companies in those networks treat in CO2 certificates, sending part of the VAT money through to Jihadist networks. These networks expand throughout Europe. Currently in Germany, Italy and the Netherlands now showing a balance between 5 to 10 billion euro’s, in favor of terrorist organizations.
In 2015 the Dutch Central Bank has put out warnings that financial institutions should be more vigilant about integrity risks like terrorism funding, money laundering and fraud for the purpose of terrorism.
According to an article from the Dutch Central Bank surveys demonstrate that over 34% of all institutions do not meet the requirements concerning integrity checks but more alarming is that only 7 out of 170 institutions actually have a good insight in where money comes from and going to that runs through their accounts.
A call to the Bank of England was made asking them about their activities on warning internal financial markets about integrity issues. Based on the information off this article their reaction was “no comment” and we should be consulting the FCA or HRM Treasury.
The Financial Conduct Authority is the conduct regulator for 56.000 financial institutes, firms and markets accross the UK. A quick glimpse on their site and a search for “terrorism” did reveal this publication on the matter. On the phone the FCA could not comment on this matter but they did state their interest is obviously to regulate the aspects of integrity avoiding fraud and money laundering.
By Walter Ivasc for World News Tomorrow