By Constantinos Massonos, Contributor
The European Union (EU) has spent years creating laws to prevent money laundering in its financial markets. Money laundering involves processing illegally obtained funds to appear legitimate. Recently, the European Commission started conducting risk assessments to identify potential threats in various financial sectors.
In 2007, the European Commission raised concerns about money laundering in the sports sector through its “White Paper on Sports.” The report highlighted issues like corruption, tax evasion, bribery, and money laundering in sports.
Thirteen years later, football remains the world’s most popular sport and continues to grow rapidly, attracting both fans and investors. This growth also attracts individuals investing questionable amounts with no clear financial returns.
Football’s complex relationships and lack of regulation make it a target for criminal activities like money laundering. The massive money involved heightens the sector’s vulnerability.
National police forces and Europol began addressing unlawful involvement in football. In 2016, Operation “Matrioskas” uncovered a Russian mafia-led crime group laundering millions in Portugal.
In 2018, investigations across seven European countries uncovered another international crime group linked to money laundering, bribery, and match-fixing.
These cases reflect just a fraction of the problem, prompting the European Commission to recognize the significant money laundering risks in football. As a result, the Commission added football to its 2019 Supranational Risk Assessment watchlist.
The European Commission didn’t just add football to the watchlist; it proposed statutory measures and recommendations for member states. These measures require football stakeholders to report suspicious activities, similar to banking regulations.
These proposed measures represent a crucial step by the European Union to regulate football’s finances and prevent criminal infiltration.
For further information on the proposed regulation and measures, you can contact us at [email protected].