| Criminals are indeed using football for money | | | | investors. Big money could move unspotted in and |
| laundering and tax evasion. They increasingly use | | | | out and inflated agent fees and betting networks can |
| huge amounts of money transfers and frequently | | | | all help criminals to mask the origin of dirty money |
| tend to use complex accounting to make any | | | | and acquire it the legitimate appearance. This explains |
| attempt to trace origin of the money very difficult, if | | | | why suspected criminals run after clubs in financial |
| not impossible. | | | | difficulties and provide them with money to settle |
| Money laundering is a process that takes illicit or | | | | their debts. Furthermore, football is a way for |
| “dirty” money generated from illegal activities | | | | criminals to acquire social respectability which is |
| and puts it through a cycle of transactions so that it | | | | needed to provide criminals with cover to hide the |
| comes out at the end as apparently legal or | | | | illegal activities. |
| “clean.” In general, the money is generated | | | | Criminals may get their washed funds back by selling |
| from a range of criminal activities, such as drug | | | | the club's equipment and services at very high prices, |
| trafficking, murder for hire, theft, robbery, | | | | or through sales of media rights, tickets, players and |
| embezzlement and fraud. The process conceals the | | | | products. |
| true source, ownership or use of funds. | | | | One may ask if criminal associations in Egypt or the |
| A recent report issued by the OECD's Financial Action | | | | Middle East ever think of using football clubs and |
| Task Force (FATF) revealed that football clubs are | | | | players as a vehicle for money laundering? There is |
| seen by criminals as an attractive money-laundering | | | | a strong conviction that it is very unlikely. In this part |
| opportunity and a perfect vehicle to move illegal | | | | of the world football does not pose the same |
| funds cross border. The report also shed light on | | | | degree of money laundering risk as opposed to |
| human trafficking, corruption, drug trafficking and tax | | | | Europe for several reasons; |
| evasion. It highlighted more than 20 cases of money | | | | - Generally, football clubs are run by elected boards |
| laundering after conducting a questionnaire in 25 | | | | mostly comprising respectful public figures of high |
| countries. | | | | integrity. The clubs' activities are adequately |
| In one case the authorities spotted an attempt to | | | | regulated. |
| launder money through the purchase of a famous | | | | - Football clubs are not business enterprises where |
| Italian football club using funds supplied by a criminal | | | | investors can buy them. |
| gang operating in central Italy. | | | | - Football betting is not allowed by law. |
| Helped by globalization and lucrative television rights, | | | | In Egypt there are several talented professional |
| the amount of money in football soared turning clubs | | | | football players playing for European clubs. The list |
| into huge business enterprises. For example, the | | | | includes Amr Zaki, Ahmed Hossam, Essam El-Hadary, |
| enormous sums paid for top players reached | | | | Hany Ramzy among others. No one raised brows at |
| unexpected levels when Manchester United winger | | | | the deals to transfer them to European football clubs. |
| Cristiano Ronaldo signed a contract for $131.5 million | | | | The amounts involved were too small in comparison |
| to transfer to Real Madrid. | | | | to what was paid to top players! |
| What makes criminals find football clubs an attractive | | | | In a nutshell, we may conclude that football clubs |
| mean to launder money could be attributed to the | | | | business is not an attractive conduit for money |
| weak management of the clubs. Many clubs are run | | | | laundering in Egypt. Still, the risk cannot be totally |
| by armatures and can easily be acquired by dubious | | | | ignored. |