OLAF dismantles illegal cigarette network

The European Anti-Fraud Office (OLAF) and  law enforcement authorities in Italy and Germany have dismantled an international cigarette contraband network that was manufacturing “made in Italy” cigarettes destined in part for the illegal market in the European Union (EU).

More than 10 individuals were arrested in an ongoing investigation. The network produced cigarettes in the EU and simulated exports or carried out real exports to third countries. Then it smuggled the cigarettes back into the EU to avoid applicable taxes. The illegal trade cost  Italy alone more than €90 million ($110 million) in lost tax revenue.