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Counterfeit and smuggled cigarettes cost EU member states €10 billion in lost tax revenue last year

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counterfeit and smuggled cigarettes cost EU member states €10 billion

The EU illicit trade in black market cigarettes cost member state governments a total of €10 billion ($11.23 billion) in lost tax revenues in 2018, according to a new report from professional services firm KPMG.

That figure was up €369 million on 2017, despite the total number of counterfeit and smuggled cigarettes consumed in EU nations falling 1.1 billion to 43.6 billion.

Commissioned by US tobacco giant Philip Morris International, the independent study revealed that the EU market for smuggled and counterfeit traditional smoking products was equivalent in size to total legal cigarette sales in the United Kingdom, Austria and Denmark combined last year.

In total, counterfeit and smuggled cigarettes in the EU were estimated to account for 8.6% of all consumption across the 28-nation bloc in 2018.

KPMG found that while the circulation of smuggled, illicit whites and other illicit tobacco product volumes declined in 2018, counterfeit was the only category to show year-on-year volume growth.

The number of fake cigarettes in circulation across the EU rocketed by 33% to 5.5 billion in 2018, which was the highest level recorded since KPMG first conducted the study back in 2006.

Half of the nations included in the study witnessed an increase in the consumption of fake cigarettes last year, with the largest volumes being reported in Greece (1.5 billion) and the UK (0.9 billion).

Commenting on KPMG’s findings, Alvise Giustiniani, PMI Vice President of Illicit Trade Prevention, said: “Beyond damaging government revenues, harming legitimate businesses—including our own—and fuelling crime in local communities, the availability of cheap, unregulated cigarettes on the black market undermines efforts to reduce smoking prevalence and prevent youth from smoking.

“For PMI to have impact in our drive to unsmoke the world, we must sustain our combined efforts to eliminate illicit cigarette trade, while ensuring responsible access to better alternatives for the men and women who would otherwise continue to smoke.”

Last month, Europol announced that it had coordinated an operation involving law enforcement agencies from a number of EU members states that resulted in the break-up of a gang that is thought to have made some €680 million from cigarette trafficking and a range of other illegal activities.

The organised criminal network behind the conspiracy is said to have made the majority of its profits through the smuggling of cigarettes and drugs to the UK, before shipping cash to Poland, where it was laundered in currency exchange offices and invested in property in Spain and other countries.

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Singaporean woman facing 20 years in jail for printing homemade bogus banknotes

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printing homemade bogus banknotes

A woman in Singapore is facing as many as 20 years behind bars after police arrested her on suspicion of printing her own homemade counterfeit banknotes.

Officers from the Singapore Police Force (SPF) detained the 30-year-old after receiving multiple reports of attempts to pass off fake S$50 ($37) notes at various retail outlets across the Hougang and Tampines housing estates.

After carrying out enquires, investigators from the SPF’s Commercial Affairs Department identified the woman as the source of the bogus banknotes and proceeded to arrest her.

Police seized two suspected fake banknotes, a printer, stationery, two handbags, and more than S$1,200 in cash from the woman.

The SDF believes she used the printer to produce the fake S$50 notes, which she then proceeded to spend on several low-value items on at least 10 occasions.

She also stands accused of being involved in a theft that took place back in February.

The woman was charged with counterfeiting banknotes and then using them, offences that can be punished in Singapore with a maximum prison term of 20 years and a large fine.

In a statement, the SDF warned members of the public to remain vigilant for people attempting to pass off counterfeit banknotes, and to call police should they be presented with what they suspect may be fake currency.

“Preliminary investigations revealed that the woman is believed to have printed several pieces of S$50 notes with her own printer and used the counterfeit S$50 notes on at least 10 occasions to purchase items of low value,” the SDF said.

“Two pieces of S$50 notes, which are believed to be counterfeits, a printer, printing paper, stationery, apparel, an EZ-link card, cash amounting to more than S$1,200 and two handbags were seized as case exhibits.”

Earlier this month, the SDF said it had received multiple reports of people attempting to spend bogus S$50 and S$100 banknotes at convenience stores, restaurants and retail outlets in a number of locations.

The force said it had arrested and charged three men aged between 25 and 29 in connection with the reports, which it said related to currency that appeared to have been photocopied and lacked security features such as watermarks and security threads.

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Drug traffickers using private airstrips and ports in the Philippines to import narcotics, authorities warn

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drug traffickers using private airstrips

Drug investigators in the Philippines are introducing new measures intended to prevent the importation of illicit substances through the country’s hundreds of private airstrips and ports, according to the country’s state-run news agency.

In an interview published on Friday, Philippine Drug Enforcement Agency (PDEA) boss Aaron Aquino said traffickers are routinely using unmanned runways and private ports as landing spots for private airplanes, seaplanes and yachts carrying large quantities of illegal drugs.

Aquino raised his concerns after the issue was discussed during the Philippines’ Inter-Agency Committee on Anti-Illegal Drugs (ICAD) Enforcement Cluster Meeting, which was held earlier this month in Quezon City.

The PDEA is now lobbying for the establishment of a new inter-agency taskforce designed to stop drug traffickers from using the country’s 1,200 private ports as entry points.

“Before, drug trafficking organizations (DTOs) are shipping tons of illegal drugs, either finished products or raw materials, through shipside smuggling in the high seas, airports and seaports. But now, they have included in their itineraries unmanned landing strips and private ports as drug transit routes,” Aquino said.

“Airstrips have no airport facilities that is why proper documentation of the name of the arriving passenger/s, cargo details, among others, remains a problem. There is also a possibility that foreign chemists flew in and out of the country via the backdoor using the runways and open seas.”

Separately, the Philippine Information Agency has announced that the PDEA has opened a dedicated rehabilitation centre for glue sniffers in Quezon City.

Opening the Sagip Batang Solvent Reformation Centre, Aquino said the facility would help take children and young people off the street and keep them away from drug use.

Workers at the new site will offer reformative care and reintegrated interventions such as education, counselling, values formation and skills development.

The centre is currently treating 28 solvent abusers, the youngest of whom is aged just 11, the PDEA said.

Impoverished children living in slums across the Philippines regularly sniff glue as a means by which to alleviate their hunger and escape from the squalid nature of their environment.

The industrial solvents they inhale can cause sudden death, brain damage, memory loss and harm to the central nervous system, kidneys and liver.

Children addicted to glue and other solvents in the Philippines often fund their habits through petty crime such as street robberies, extortion and drug dealing.

Earlier this month, the PDEA launched a new programme that will see solvent abusers housed in government institutions until they address their addictions.

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Global food fraud crackdown results in seizure of goods worth $117 million and arrest of 672 suspects

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global food fraud crackdown

Fake food and drink products estimated to be worth $117 million have been seized during a global coordinated crackdown on food fraud coordinated by Interpol and Europol’s Intellectual Property Crime Coordination Centre.

Law enforcement officials taking part in the latest instalment of Operation Opson, which is intended to target criminals involved in the sale of counterfeit and substandard food and drink products, also arrested 672 individuals across the world.

Taking place between December 2018 and April this year, Operation Opson VIII saw police, customs officers, food regulatory authorities and private sector partners in 78 countries target individuals and organisations involved in the growing global food fraud trade.

Investigators participating in the effort successfully removed approximately 16, 000 tonnes and 33 million litres of potentially dangerous fake food and drink from global supply chains after collectively carrying out over 67,000 inspections at shops, markets, airports, seaports and industrial estates.

Authorities contributing to the operation reported discovering cheese and chicken products labelled with fraudulent expiry dates, drink products that had been adulterated with controlled drugs, and meat that was stored in unsanitary conditions.

In Zimbabwe, police confiscated more than 14,000 litres of soft drinks that contained high levels of the active ingredient in erectile dysfunction medication, while investigators in Belarus impounded more than 60 tonnes of apples that were being transported under forged documentation.

Law enforcement officers in Russia seized 4,200 litres of counterfeit alcohol as they shut down an illicit vodka production site, while their colleagues in South Africa detained three suspects in connection with the discovery of alcohol meant for export that had been repackaged and sold domestically to avoid taxes.

Elsewhere, customs investigators in Italy seized over 150,000 litres of poor-quality sunflower oil that fraudsters had attempted to pass off as extra virgin oil by adding chlorophyll and beta-carotene to the finished product.

Revealing the results of the latest Opson operation in a statement, Interpol Director of Organised and Emerging Crime Paul Stanfield said: “Counterfeit and substandard food and beverages can be found on the shelves in shops around the world, and their increasing sale online is exacerbating the threat that food crime poses to the public.

“Operation Opson VIII saw a substantial amount of counterfeit food and drink taken out of circulation, but there is much more that can be done.

“Interpol calls for further efforts and better coordination at the national, regional and international levels in order to stem this tide which endangers the health of consumers worldwide.”

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