19 Suspects on Trial in One of France’s Largest Money Laundering Cases

Nineteen individuals have gone on trial in what is being described as one of the largest money laundering cases ever investigated in France. The accused are charged with laundering more than €65 million through an intricate network of fictitious companies spanning Europe and China.

According to Tracfin, France's Financial Intelligence Unit, the suspects allegedly ran a complex scheme involving multiple fake companies. The investigation revealed that the chief suspect laundered €37.6 million between January 2020 and April 2024. Tracfin stated that the suspect, described as a "business provider," had declared an official income of just €2,000 per month while receiving transfers from legitimate companies in exchange for false invoices.

“These ‘business provider’ declared an official income of 2,000 euros per month [and] received transfers from real companies in exchange for false invoices,” said Tracfin. The organisation explained that the money was funneled through several companies with “no real economic activity,” with funds being transferred between various European nations before eventually landing in accounts in mainland China.

The alleged money laundering activities are believed to have centered around the France-Asia International Wholesale Centre in Aubervilliers, a commercial area northeast of Paris. Tracfin suspects that many wholesalers in this area “hold large amounts of cash from undeclared sales, to avoid having to pay VAT.” This untaxed cash was then handed over to the main suspect for laundering, with the accused taking a 15% commission in return.

“This untaxed money enabled the beneficiaries to pay for personal expenses with company money or to pay employees without having to pay social security contributions or taxes,” Tracfin added.

In addition to the main group, a second faction is accused of laundering €29.5 million through a VAT fraud circuit involving Italian and Chinese companies.

Lawyers representing the main defendants declined to comment when contacted by news agency AFP. The trial is expected to continue until September 27.

By fLEXI tEAM