A terror cell funded Moroccan and Spanish jihadists through VAT food fraud

A Spanish terror cell was making money out of tax fraud on chicken, cheese, and chocolate sold in Denmark, to send Moroccan and Spanish fighters to Syria, French news agency AFP reported, quoting an investigation conducted by non-profit European newsroom Correctiv.

According to the same source, this cell managed to raise €8 million, to financially support its activities since 2005. In fact, the cell in question recruited 24 Moroccan fighters and sent them to Syria, Mali and Libya to fight for ISIS. Six members of the cell, who were based in Melilla, were arrested in 2014, a Guardia Civil spokesperson told AFP.

The cell succeeded, through other militants in Denmark, to establish ties with Danish companies and get its members senior positions within these food firms.

Taking advantage of «loopholes in European law», the cell avoided paying value-added tax (VAT) on the products sold by these Danish firms, through inactive companies, used as vehicles for various financial manoeuvres.