Former European Justice Commissioner Didier Reynders is below investigation for an alleged follow involving the acquisition of a number of lottery tickets, an space {that a} new Brussels regulation handed earlier this yr explicitly deems low danger.
A not too long ago handed EU anti-money laundering regulation comprises an specific exclusion for nationwide lotteries – the precise technique for which former EU commissioner Didier Reynders is suspected by Belgian police, Euronews can reveal.
The EU regulation, finalized earlier this yr throughout Reynders’ tenure and as a result of come into power in 2027, explicitly deems state-run lotteries to be decrease danger and subsequently much less in want of id checks.
“It must be attainable for Member States to establish playing companies related to low dangers of cash laundering and terrorist financing, resembling state-owned or non-public lotteries or state-administered playing actions, and determine to not apply all or among the necessities of this Regulation to them,” reads a recital to the 2024 EU regulation.
The new guidelines enable particular person governments to request an exemption for his or her lotteries, which the Commission can settle for or reject.
That textual content was not a part of the Commission’s authentic proposal for 2021 and was inserted on the insistence of MEPs, remaining a contentious situation within the legislative course of till the top of 2023, paperwork seen by Euronews recommend.
In follow, the interviews for the Commission had been carried out by the Irishman Mairead McGuinness. Responsibility for EU anti-money laundering coverage was shifted from Reynders’ Justice Department to turn out to be a monetary companies situation earlier than he took workplace.
But will probably be a humiliation to Brussels that its regulation explicitly gives for a follow to which, if allegations are to be believed, one among its senior officers was linked.
On Tuesday, Belgian media reported that addresses linked to Reynders, who served as justice commissioner for 5 years that ended final Sunday, had been searched by police. He has not been charged with any crime and is presumed harmless.
According to the Belgian newspaper Le Soir, Reynders allegedly carried out suspicious transactions over an extended interval by buying “digital tickets” from the nationwide lottery, which has a mean successful price of 60%.
These tickets, which value as much as 100 euros, might be bought in money, whereas winnings might be transferred through on-line banking.
While criminals mostly put money into high-value properties or property to cover ill-gotten beneficial properties, using playing, and significantly casinos, can also be well-known to authorities.
A 2015 report by the European police company Europol particulars quite a lot of scams, together with criminals shopping for successful lottery tickets for greater than face worth or drug sellers utilizing fixed-odds betting terminals to win again part of their cash.
“The on line casino enterprise is cash-intensive, aggressive in its progress and weak to felony exploitation,” the Europol report says – and criminals prefer it as a result of, when questioned by police in regards to the supply of their cash, they’ll merely say they’ve it received. playing.
However, the lottery seems to be a much less standard means of cash laundering.
The worldwide standard-setting physique, the Financial Action Task Force, recommends that anti-money laundering controls cowl high-value transactions at casinos, however doesn’t point out lotteries.
ANNOUNCEMENTIn an announcement launched to the media, the Belgian National Lottery, owned by the state and its sovereign wealth fund, stated that, within the final 5 years, it had reported just one case of suspected cash laundering: that of Reynders.
“The National Lottery isn’t enticing to these searching for to launder cash,” the assertion added, saying the accounts are linked to nationwide id paperwork and that anti-money laundering regulation applies to factors of sale.
European Commission spokespeople didn’t instantly reply to requests for additional remark, however had beforehand stated they had been unaware of the Belgian authorities’ investigation till the media reported on it this week.
