EU steps up crypto money-laundering fight with new financial crime chief

Europe is set to appoint a new top official in charge of combating money laundering, including the criminal use of cryptocurrencies. Europe’s police-intelligence agency is about to elect Giuseppe Lopez, a senior Italian law enforcement officer, to lead its financial crime division, as the continent intensifies efforts to combat illicit cross‑border money flows.

Lopez, a colonel in Italy’s Guardia di Finanza, the force specializing in financial and economic crimes, is expected to head Europol’s European Financial and Economic Crime Centre (EFECC), sources familiar with the matter said. While an official announcement could come as early as next month, the appointment has not yet been formally confirmed.

Increasing cases of money laundering call for the need for relevant authorities to act

Analysts have urged Europe to enhance its defenses against money laundering activities, as cases such as cross-border fraud, organized crime, and evading sanctions are occurring more frequently, surpassing the ability of national enforcement agencies to handle the situation.

Additionally, sources noted that prosecutors are facing hardship in dealing with significant amounts of cryptocurrency that criminal organizations use to launder money and other assets. An example of this scenario was recently highlighted when the US successfully confiscated approximately $15 billion worth of Bitcoin after uncovering an alleged extensive cyber fraud operation that was carried out in Cambodia.

Meanwhile, regarding the appointment for the position of Head of Europol’s European Financial Crime Centre, Claire Georges, a representative for Europol, sent an email stating that the official confirmation for the appointment has not been made yet.

Notably, the role of the EFECC is to help member countries in tracking financial movements, identifying who truly benefits from those funds and aiding in the seizure of assets when money crosses borders.

Since its inception in 2020, the EFECC has focused on coordinating complex international cases and supporting national investigations that may encounter delays at borders.

In April 2022, EFECC initiated and launched Operation Oscar, an initiative aimed at tracking and seizing assets of individuals and entities sanctioned in relation to Russia’s invasion of Ukraine.

According to reports so far, the project has managed to freeze and seize assets worth more than €2 billion — around $2.3 billion — associated with the enforcement of such sanctions.

On the other hand, Europol, located in the Netherlands, acts as the law enforcement agency for the EU. It also provides intelligence and operational support to police forces across the 27 member countries on organized crime, cybercrime, and terrorism. However, reports continue to highlight the increasing instances of money laundering in the region.

The US confirms the largest forfeiture case in history

Last month, US officials charged a Chinese-born Cambodian tycoon and the founder of the multinational conglomerate Prince Holding Group, Chen Zhi, with running a major cyber fraud operation. This led to the seizure of Bitcoin valued at approximately $15 billion, the largest forfeiture case to date.

The announcement was made public after federal prosecutors in Brooklyn, New York, accused the 38-year-old head of Prince Group of being involved in a wire fraud conspiracy and managing a money laundering scheme.

His operation reportedly employed forced labor in Cambodia to emotionally manipulate thousands of victims in the US and globally. During this activity, they would inflate these victims’ accounts before draining them using a method called “pig butchering.”

The push to clamp down on abuse and introduce stronger leadership comes as criminals have increasingly used digital assets to mask illicit proceeds. Crypto’s swift, cross-border characteristics, combined with its anonymity, make it an attractive option for laundering.

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