German and Belgian authorities raid network over 60 million euro tax fraud

Approximately 800 law enforcement officers conducted raids across Hessen, North Rhine-Westphalia, and Belgium targeting a suspected large-scale money laundering and tax evasion network. The investigation, involving the European Public Prosecutor's Office (EPPO) and German authorities, focuses on 50 suspects accused of operating a system described as “cash against book money.”

Under this scheme, companies from third countries allegedly used illegal cash from the sale of illicit goods in Germany. The suspects provided shell companies to convert this cash into “book money,” allowing it to be transferred to foreign accounts as seemingly legitimate business earnings in exchange for a three percent commission.

The network also reportedly facilitated undeclared labor, particularly within the transport and logistics sectors. By using the cash to pay employees off the books and using the corresponding “book money” to pay for fraudulent invoices, the group allegedly evaded more than 60 million euros in taxes and social security contributions. Investigators have traced payment flows totaling approximately 150 million euros dating back to 2017.