Not for the first time in the history of the European Parliament, a seismic shift in the football industry originated in Belgium. Football Financial Crimes would be the key area of discussion for the new proposed European Bill.
It all began with an investigation into alleged bribery, money laundering, forged transfer contracts, and the involvement of organized crime at the highest levels of professional football. What started in 2018 eventually implicated nearly 60 agents, administrators, referees, and coaches, sending shockwaves through the corridors of power in Brussels.
What is Operation Clean Hands ?
Operation Clean Hands, in the context of football, refers to an investigation into alleged corruption, bribery, money laundering, and other illicit activities within the football industry. The operation began in Belgium in 2018 and eventually implicated nearly 60 agents, administrators, referees, and coaches. It uncovered a web of corruption that not only led to the establishment of new strict financial regulations for clubs in Belgium but also raised concerns at the European Union level.
The operation highlighted the prevalence of football financial crimes, prompting calls for stricter regulations and oversight. It also sheds light on the need for greater transparency and accountability in the sport. Operation Clean Hands serves as a reminder of the ongoing challenges faced by football authorities in combating corruption and ensuring the integrity of the game.
Operation Clean Hands, as it came to be known, uncovered a level of corruption that not only prompted the establishment of new strict financial regulations for clubs in Belgium but also raised concerns at the European Union level.
EU AML Bill Recognises Football Financial Crimes
In 2019, football was added to the EU’s watchlist of money-laundering risks, with estimates suggesting that approximately $140 billion is laundered through the sport every year.
While many leagues already had strict financial regulations aimed at preventing fraud, French MEP Damien Carême highlighted that the focus had been more on complying with financial fair play regulations than on combating corruption. “Criminals, oligarchs, and the rich and powerful have privileged ways of laundering their dirty money, and football is one of them,” Carême stated, emphasizing the need to prioritize integrity over competitiveness in football.
On Wednesday, member states of the European Parliament are set to vote on including the football financial crimes in the sixth anti-money laundering directive. The proposed legislation would require most professional clubs and every agent within the European Union to verify their customers’ identities, monitor transactions, and report suspicious activities to the relevant Financial Intelligence Unit (FIU) starting in 2029.
These “obliged entities” would also be mandated to identify and publish beneficial owners who own at least 15% of the club, enhancing transparency in financial dealings. The proposed changes are expected to be seismic, with an extended adaptation period to facilitate compliance, particularly for clubs facing challenges in Belgium.
However, critics have raised concerns about the rushed nature of the legislation, arguing that it lacked extensive impact assessment over several years. Despite reservations from stakeholders such as Uefa and Football Supporters Europe (FSE), the legislation is set to proceed, with exemptions granted to smaller clubs deemed “proven low risk.”
Read More About
- Money Laundering through Sports is rampant
- Palestinian Call for Sanctions Against Israeli Soccer in FIFA
- David Beckham Sues Hollywood Star for £8.5 Million Fraud
Uefa has acknowledged the objectives of policymakers and stakeholders in combating financial crime and protecting the integrity of the game. While concerns about the competitiveness of clubs and potential unintended consequences persist, EU policymakers assert that harmonizing the fight against corruption in football is paramount.
As the clock ticks towards implementation, there is a growing recognition that football financial crimes transcend borders and require concerted efforts at both European and national levels. With the spotlight now firmly on the football industry, there is no hiding from the imperative to clean up the game and safeguard its future integrity.
