European Police Chiefs Warn of Money Laundering as Central Threat to Organized Crime

More than 400 senior police officials from 53 countries convened at Europol headquarters in The Hague for the 2025 European Police Chiefs Convention, where discussions quickly highlighted that money laundering underpins nearly every major form of organized crime. During the “Follow the Money” sessions, officials revealed how criminal enterprises continue to outpace regulators, exploiting crypto assets, virtual banking services, and decentralized financial platforms to conceal illicit flows. The event underscored not only the vast scale of laundering operations across Europe but also the technical, legal, and structural gaps that allow such schemes to thrive.

The renewed emphasis on financial crime reflects the changing nature of criminal activity. Modern gangs no longer rely solely on traditional layering techniques through banks or cash smuggling; instead, they leverage a patchwork of digital payment tools, virtual IBANs, and emerging fintech products that provide speed and anonymity. Police chiefs described the situation as a race between innovation and enforcement, with investigators often trailing adversaries who operate without jurisdictional boundaries or compliance obligations.

Money laundering remains the strategic enabler of organized crime, officials noted. Whether it is narcotics trafficking, arms smuggling, cyber-enabled fraud, or terrorist financing, none of these activities can be sustained without integrating dirty money into the legitimate financial system. Detecting, tracing, and confiscating illicit assets, therefore, is not only an anti-money laundering concern but a frontline issue in safeguarding European security.

The convention highlighted how laundering techniques have decisively shifted toward the digital realm. Participants pointed to the growing reliance on cryptocurrencies and decentralized finance to obscure illicit money trails. Whereas criminal networks previously depended on cash-intensive businesses, shell companies, or trade mispricing, they now move funds through blockchain-based exchanges, non-custodial wallets, and mixers designed to break transaction trails. Virtual IBANs, in particular, have emerged as a favored tool because they allow rapid creation of international accounts linked to legitimate banks but controlled through intermediaries providing anonymity. These accounts can be opened in minutes and dismantled just as quickly, complicating investigative work.

Police chiefs also raised concerns about fintech applications enabling micro-payments, peer-to-peer transfers, or prepaid digital cards that can be loaded and drained across borders with little oversight. Beyond technology, criminals exploit regulatory loopholes across jurisdictions, using regions with weaker standards or limited cooperation as “safe havens” to shield assets from scrutiny. The digital transformation of laundering has created significant barriers for investigators, who face high costs for blockchain analytics tools and a shortage of personnel trained to understand decentralized finance, automated smart contracts, or sophisticated token-based laundering mechanisms. Without investment in training and technology, enforcement risks lagging while criminals refine their methods further.

Confronting these challenges requires structural innovation, police chiefs emphasized. One proposal gaining traction involves joint investigative “sprints” across borders, temporary high-intensity task forces that allow multiple jurisdictions to share intelligence and act quickly to freeze assets before they can be moved out of reach. Another key proposal focused on elevating money laundering to a standalone offense, independent of proving the underlying predicate crime. This approach, already present in some European legal systems, enables prosecutors to act swiftly when suspicious flows are detected, without the burden of proving every detail of the original criminal act. Treating money laundering as its own crime acknowledges that concealing funds is a severe societal threat in itself, regardless of whether the predicate activity can be established in court.

Public–private partnerships were highlighted as essential. Financial institutions, fintech firms, and even gaming platforms play a critical role in detection. Police leaders recognized that investigators cannot trace illicit flows alone. Early warning systems, data sharing arrangements, and proactive compliance alerts are necessary to bridge gaps between frontline institutions and law enforcement. Yet many firms remain hesitant due to privacy concerns, reputational risks, or the costs of compliance.

The shortage of experts remains a pressing issue. Developing teams that combine forensic accountants, blockchain analysts, data scientists, and traditional financial investigators requires resources that many countries cannot sustain individually. Officials called for pooled investment in technology and training at the European level, warning that without harmonized standards and centralized expertise, investigations risk fragmentation, leaving criminals free to exploit the weakest link.

The convention made clear that money laundering is no longer a niche concern confined to financial regulators. It is a cross-cutting threat that destabilizes economies, finances terrorism, and erodes trust in public institutions. Senior officials noted that laundering has become commoditized, with specialized brokers offering services to disguise funds for a fee. This allows smaller groups, including cybercriminals or fraudsters, to access sophisticated laundering pipelines without building infrastructure themselves, scaling the risk of mid-level actors moving significant sums undetected.

Delegates also highlighted the connection between laundering and emerging social threats. Minors recruited into cybercrime via gaming or social media produce illicit proceeds that must be laundered. Digital ecosystems that appear benign can serve as pipelines for both recruitment and financial concealment, demanding a converged enforcement approach. Trade-based laundering was another focus, with customs officials integrated into discussions. Mispricing, false invoicing, and import–export abuses continue to hide criminal proceeds, demonstrating the need for coordination across financial, border, and security institutions.

For Europe, the stakes are high. If money laundering continues unchecked, it not only funds organized crime but also undermines regulation of fintech innovation, digital assets, and legitimate cross-border commerce. The challenge, officials concluded, is to encourage financial innovation while ensuring that new tools do not become gateways for illicit finance.

By fLEXI tEAM