National Threat Assessment 2008. Organised Crime - Politie

market. In 2006 there was little cigarette smuggling in investigations aimed
at criminal organisations. Cigarette smuggling was a secondary activity in
addition to drug trafficking as the main activity in two investigations, and in
one investigation cigarette smuggling was a primary activity. The financial loss
involved is unknown. The estimated scale of the black market in cigarettes rose
from 500 million cigarettes in 2003 to 650 million cigarettes in 2005. The fiscal
loss for the Dutch state totalled 55.5 million and 87 million euros respectively.
Research by FIOD-ECD into ‘illegal smoking’ in the Netherlands shows that there
was an increase in ‘illegal smoking’ from 3% of all smoking in 2003 to 5% in
2005. In 2005 the cigarettes involved were mainly counterfeit brands (4%) and
to a lesser extent ‘smuggled’ brand cigarettes (1%). According to FIOD-ECD,
the scale of excise fraud involving mineral oils is unknown. The total amount
of excise duty on mineral oils received by the Dutch government is around 6
billion euro per year. A relatively small number of investigations are conducted
into excise fraud involving mineral oils; fraud investigations are complex and
very time-consuming. In the 2000–2007 period FIOD-ECD conducted seven
investigations. Various agencies have noted signs that the scale of excise
fraud has increased in recent years.
Based on figures from OLAF for 2006, the number of cases in which excise
and customs fraud play on a European level is small. The same applies to
investigations into evasion of VAT regulations. This conclusion cannot be drawn
from the number of current cases. At the end of 2006 the total number of 430
cases being handled by OLAF included 77 relating to cigarettes, 72 relating
to Customs regulations and 45 relating to VAT fraud. This comes down to just
under half of the total number of cases. However, the numbers of new and
completed investigations were small, both in terms of the numbers themselves
and the proportion compared to the overall total. In 2006, a total of 10, 23
and 12 of the aforementioned three types of cases were completed.
3.2.4 Criminal organisation
Little is known about the structure of criminal organisations involved in public
purse frauds. There are various reasons. First of all, a relatively small number
of investigations were conducted into criminal organisations involved in VAT
fraud, cigarette smuggling or excise fraud involving mineral oils. Secondly, the
investigations are usually limited to the facilitating role of the Dutch link in the
criminal organisation. Due to the international nature of these types of fraud,
an investigation into the entire criminal organisation would require too much
time and capacity.
chapter 3 – Fraud and money laundering
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