Operation Karasu Uncovers Multinational Money Laundering Network Operating Across Europe

Spanish law enforcement, with support from Europol, has dismantled a sprawling money laundering syndicate that spanned Spain, Belgium, and Austria. Dubbed Operation “Karasu”—named after a river in Turkey—the months-long investigation led to the arrest of seventeen individuals, primarily of Chinese and Syrian descent, in a major blow to transnational organized crime.

The investigation, according to the Spanish National Police, originally focused on a migrant smuggling ring trafficking Syrian nationals from Algeria into Spain. What began as an immigration probe quickly widened in scope, revealing two sophisticated and interlinked criminal networks—one of Arab origin and the other Chinese—using the informal hawala system to move millions in illicit funds across borders without detection.

During a press conference in Madrid, Chief Police Inspector Encarna Ortega identified the primary ringleader as a Jordanian-Palestinian national based in Belgium. Despite residing in another country, the individual was able to orchestrate complex operations remotely by coordinating financial handlers and logistical facilitators located within Spain.

From June 2022 through September 2024, the network laundered approximately $21 million, derived largely from human smuggling and narcotics trafficking. Inspector Ortega emphasized the magnitude of the network’s reach and its grave implications, stating that the criminal enterprise “posed a substantial threat to European financial systems and raised serious security concerns.”

The network relied on hawala, an ancient and informal method of transferring money commonly used in regions such as the Middle East, Asia, and Africa. Its appeal lies in its low cost and efficiency, but its reliance on trust-based intermediaries, known as hawaladars, and absence of formal paper trails make it particularly vulnerable to abuse by criminal entities. “Hawala’s informality allowed this criminal network to conduct extensive operations undetected for an extended period,” Ortega stated, noting that digital currencies were also used to further complicate tracking efforts.

Authorities uncovered the extent of the operation through sweeping seizures that mirrored the profitability and international footprint of the network. Police confiscated €205,000 in cash, over €183,000 in cryptocurrencies, and eighteen vehicles. Real estate assets were also seized alongside a cache of smuggled cigars with an estimated value exceeding €600,000. The cigars were reportedly intended for the Chinese market, reflecting the global connections maintained by the criminal group. Ortega commented on the breadth of the operation: “The seized contraband cigars were destined primarily for the Chinese market,” highlighting how criminal networks are increasingly merging illegal activities with legitimate trade to obscure their financial origins.

The success of Operation Karasu hinged significantly on international coordination. Europol played a central role in intelligence gathering and joint enforcement efforts between authorities in Spain, Austria, and Belgium. As European law enforcement shifts greater focus toward financial crimes, collaborative frameworks are becoming indispensable tools for dismantling money laundering operations tied to broader criminal enterprises, including terrorism financing. “This investigation demonstrates our commitment and effectiveness,” Ortega stated. “But we must remain vigilant as criminals are always adapting.”

Efforts to counter these threats are reinforced by the European Union’s legislative advances, such as the 6th Anti-Money Laundering Directive (6AMLD), which aims to standardize enforcement mechanisms and boost cooperation across member states. Such initiatives are critical to enabling operations like Karasu to succeed.

Operation Karasu serves as a strategic win in the ongoing fight against international money laundering. Yet, as Ortega made clear, it represents only a single victory in a much larger, evolving conflict. With organized crime adapting its methods and exploiting new technologies, law enforcement agencies must continue to innovate and cooperate to stay one step ahead.

By fLEXI tEAM