Money laundering in the football sector

Financial Action Task Force

Groupe d’action financière

FATF Report

Money Laundering through the Football Sector
July 2009

THE FINANCIAL ACTION TASK FORCE (FATF)
The Financial Action Task Force (FATF) is an independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering and terrorist financing.Recommendations issued by the FATF define criminal justice and regulatory measures that should be implemented to counter this problem. These Recommendations also include international co-operation and preventive measures to be taken by financial institutions and others such as casinos, real estate dealers, lawyers and accountants. The FATF Recommendations are recognised as the global anti-moneylaundering (AML) and counter-terrorist financing (CFT) standard. For more information about the FATF, please visit the website: WWW.FATF-GAFI.ORG

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Money Laundering through the Football Sector – July 2009 

TABLE OF CONTENTS EXECUTIVE SUMMARY ................................................................................................................4 INTRODUCTION..............................................................................................................................5 Scope ..................................................................................................................................................5 Methodology .......................................................................................................................................6

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CHAPTER 1: MONEYLAUNDERING AND SPORTS ..................................................................7 Which sports? .....................................................................................................................................7 Why football? .....................................................................................................................................8CHAPTER 2: STRUCTURE OF THE FOOTBALL SECTOR.......................................................10 Football governance .........................................................................................................................10 Football finances...............................................................................................................................11 CHAPTER3: VULNERABILITIES OF THE FOOTBALL SECTOR ...........................................14 Vulnerabilities related to the sector‟s structure ................................................................................14 Vulnerabilities related to the sector‟s finance...................................................................................15 Vulnerabilities related to the sector‟sculture ...................................................................................16

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CHAPTER 4: CASES AND TYPOLOGIES ...................................................................................17 Ownership of clubs ...........................................................................................................................17 The transfer market andownership of players..................................................................................20 Betting activities ...............................................................................................................................24 Image rights, sponsorship and advertising arrangements .................................................................26 Related illegal...