The Greek Independent Authority for Public Revenue (AADE) has successfully dismantled a significant alcohol smuggling operation, leading to the arrest of twelve individuals and the seizure of substantial amounts of illicit beverages and assets. This operation marks one of the country’s largest interventions against alcohol smuggling.
According to reports from the police (ELAS), the organized crime group had been engaged in illegal dealings involving high quantities of alcoholic drinks. The investigation uncovered how this criminal network manipulated tax regulations through newly established companies, which they used as fronts to engage in tax-free storage and high-value exports of alcoholic products. Notably, between December 20-21, 2024, the law enforcement agencies executed operations across several locations, including areas of Athens and Lamia, resulting in significant arrests and confiscations.
"We utilized algorithms to identify suspicious activities as early as last summer," said the AADE. Their innovative use of technology played a key role in detecting irregularities linked to the operations of businesses formed around June 2023. These companies, with three tax warehouse licenses, conducted dubious transactions likened to extensive trade activity involving exports to neighboring Albania. Investigators noted peculiar patterns of intercompany transactions, particularly focusing on one Austrian firm linked to the main suspects, which had the same Greek national serving both as sole proprietor and director.
During the police operations, authorities seized over 43,116 bottles of various brands of alcohol, with the total value of confiscated goods estimated at 122,105 Euros. Alongside the alcoholic products, the police also found valuable items, including 91 gold pounds and luxury timepieces. The estimated tax revenue lost through these illegal activities is projected to reach approximately 3 million Euros.
The criminal organization was not only involved in smuggling products but also engaged in continuous money laundering practices, complicity which was evident throughout the investigation. The AADE worked closely with the customs services, continuously supplying the police with relevant data and insights necessary for tackling the smuggling operation.
The intricacies of how the operation functioned revealed alarming details. Members of the group established two domestic enterprises, with connections to fictitious entities abroad. They reported false export activities with the aim of completing fictive transactions involving exported alcoholic beverages, even though those products were ending up for sale within Greece.
"The organized crime group engaged in smuggling and money laundering practices repeatedly," stated the Greek police (ELAS). This thorough investigation illuminates the extensive networks criminals utilize to bypass regulations and generate revenue illegally.
The AADE's mathematical models and data-driven approach were pivotal. They identified anomalies across financial transactions, effectively linking various companies and the individuals involved. The operation highlights how modern data analysis can play a role in combating organized crime.
The scale of smuggling and the significant financial repercussions place emphasis on necessary reforms within the alcohol distribution industry, ensuring stricter adherence to taxes and legalities. Scheduled tax penalties are anticipated against the involved parties, expected to be between 12 million and 15 million Euros. This development could serve as a strong warning against future attempts to engage in similar illicit activities.
Overall, the dismantling of this smuggling ring demonstrates the importance of cooperation between various law enforcement and taxation bodies, ensuring more comprehensive measures against organized crime in Greece's financial sectors.
