Recently, football has gone beyond just a sport and become a global sector. With the growing economy of football as a sector, the investment of money into it has also increased, of which some of this investment has criminal connections. The FATF conducted research to find out how the football sector is used as an opportunity for money laundering. This article is aimed to shed light into this matter.

How Football Clubs Launder Money?

Criminals exploit football in various ways to launder their illicit funds:

Overvaluing players during trades: Football clubs transfer some football players on a much higher value than the official record. For instance, Neymar was transferred from Santos to Barcelona. His reported value was €57 million. Yet, it was revealed that the actual value of the transfer was more than €80 million. That transfer was investigated for possible money laundering.

Player image rights: Player image rights can be another way of money laundering in football sector. A popular example is the “Football Leaks” scandal. This case includes the release of confidential documents of business deals belong to major football clubs. It’s also revealed that avoid tax payments and launder money through player image rights.

 Agents fees: Agents fees are also a major factor in money laundering in the football sector. In 2016, Raiola was paid €49 million to manage Paul Pogba’s move from Juventus to Man Utd. This fee was the highest ever paid by an agency for a single transfer, which triggered an investigation into potential money laundering.

 Sale of football clubs: Massimo Cellino purchased Leeds United in 2014. He was a convicted criminal. Then he was accused of tax fraud and money laundering.

How Much Money is Laundered with Football?

Money laundering is easier to do in the football sector. Because there are high cash flows and minimal entrance barriers. The biggest money laundering scandal in football history occurred in 2015. It is known as the FIFA Gate. Even some FIFA executives were arrested in Zurich. The individuals faced allegations of bribery, fraud, and money laundering. Presently, approximately $140 billion is illicitly funneled through the football industry annually.

How FATF Combats with Money Laundering Through the Football Sector?

Football organizations have taken some precautions to combat money laundering in football. Here are some of them:

Regulations and guidelines: Football organizations created regulations that clubs and individuals have to follow to prevent more money laundering cases. FIFA also created a task group named “For the Good of The Game” to investigate corruption and money laundering issues. Some of the policies they implemented are:

• Early warning system on betting activities (EWS)
• FIFA Club Licensing Rules
• Players’ Agents Regulations
• Player Transfer Matching System

Financial monitoring: Football organizations established financial monitoring systems to track any suspicious activity. Unusual transactions and large cash deposits are flagged to be investigated further.

Sanctions and penalties: Football organizations have the authority to impose fines. Both teams and persons can be imposed to penalties.

Collaboration with law enforcement agencies: Football organizations work closely with law enforcement. So that they can provide information and assist in money laundering investigations.