Cannabis, the Multinational of Money Laundering - Cash investigation

Hello, how are you ? Hello, I am delighted to welcome you, Captain. Thank you so much. Thank you for hosting me. I will tell you incredible stories. No. I believe. Good evening and welcome to the wonderful world of laundering, this hidden money that escapes tax. Tonight Cash Investigation investigated cannabis bankers. They manage one of the most secret markets, but also one of the juiciest in the world. The sums at stake are enormous, more than a billion euros in turnover each year in France alone. And this billion. Traffickers must launder it, make it undetectable in order to be able to reinvest it in well-established businesses. How do they manage to escape all controls? We discovered astonishing, very organized circuits that go from France to Dubai via Morocco or Belgium. Cannabis the laundering multinational. This is an investigation by Nicolas Vescovacci. Oh there ! But sorry, but could you stop smoking your thing? What ? I don't know if you know, but your thing fuels a huge business. Oh yeah, yeah, it's amazing because it's all cash. What do you think the traffickers do with cannabis money ? Wallpaper ? Well no, they have schemes. They launder their tickets. And believe me, it's no small feat. Each year, there is 1 billion euros of turnover and not 0.01 € of taxes. The story begins in the street. Hi ! A 50 please. At the foot of the buildings. Cannabis is used every day, everywhere in France, 700,000 smokers every day. Go ahead. With traffickers who are unaware of the crisis. At my best, I could bring in up to two tonnes per month. This is because it brings in cash, all in small denominations. In this secret world, money is collected by small hands. It is laundered by secret bankers on behalf of traffickers. We have the impression that these are the workforce of an SME for the profits of a multinational. Actually. That's true, because they work in a very profitable sector. Laundering: Action of concealing the origin of money acquired illegally . To unlock the secrets of an international network, we had to change our identity. That's how we tracked the dirty money. In Morocco, we went looking for the head of the network. This money launderer, from the point of view of the law, a sort of underground thriller, that's it. Our investigation took us to Belgium, where drug money is transformed into gold. These gold bars, you can imagine, we followed them to Dubai. Suppliers come in with suitcases full of gold and come out with suitcases full of cash. Hundreds of millions of euros in cash are laundered and reinvested in the economy, particularly in France. This money is reintroduced into the legal economy. The goal of the game is to be able to use it precisely. For the system to work, certain financial players would have turned a blind eye. In my opinion, what Ernst & Young did is immoral, unprofessional and illegal. This evening, we offer you a game of “cash-cash” with these black financial barons, traffickers and money launderers. Come on, turn off your thing and make yourself comfortable. He's one of the little hands in the drug trade you've never heard of. For almost two years, this man recovered millions of euros for a money laundering network. He was neither a dealer, nor a reseller, not even a delivery man. His job was collector. In 2013, the man joined a laundering network to collect drug money. He agrees to reveal to us the secrets of these nocturnal trips. It often happens on the outskirts of Paris. So, when you came to collect large sums, what kind of sum was it... But for you, the kind of sum on average that you came to collect, how much was it? Is it an almost industrial collection? A simple collector of large volumes of cash. But then, how much was he able to collect? According to him, more than 20 million euros in small denominations. And there is more. Man has the ideal vehicle to get around and avoid all problems. Oh well no, no, still not too flashy. It is a much more discreet means of transport . Yes, an ambulance. Oh yes, a real one. With its rotating beacon and two-tone siren. Quite practical for crossing Paris with a bag of €500,000 and not being spotted by the police. It goes all the more easily because this collector is really an ambulance driver. Night and day, but especially night. This little merry-go-round will run without a hitch for more than a year. Between 2013 and 2014, Paris is his. A waltz of bags, hundreds of thousands of euros each time transported under the noses of the police in an ambulance. Until one day... Hello, Are you well? Good morning. It's a pleasure to welcome you, Captain. Thank you so much. Thank you for hosting me. Until the day this man comes on the scene You're going to tell us some incredible stories, right? Yeah, yeah, I think so. So go ahead, sit down, we'll do your makeup. Yes. Here is Quentin Mugg, police captain, one of the French blades in the fight against organized crime. It was he and his team who brought down the money laundering network that interests us. Sit here. Captain Mugg speaks for the first time. He tells us how the collectors operated. At the very beginning of the chain there are customers who pay cannabis dealers in cash. Who will take this cash? They're collectors, right? These are collectors who work on behalf of a supervisor who is often located abroad. And the collectors, are they in France? The collectors are in France. Who is it ? Truly, there is no profile. That is to say that in these files, we saw people who came from the Indian community. There were also many young Moroccans. We had a young man who was an important collector, since he collected more than 121 million euros in cash in less than a year, who was a student. all we really ask of them is to be careful and transport funds from point A to point B. It still brings a lot of money to the people who run them, these systems, these networks. And so, in this context, reputation is absolutely essential. An impeccable reputation, a profile above all suspicion, well, like an ambulance driver in fact... By wiretapping the traffickers' telephone lines, the investigators will succeed in identifying him. With each cash collection. The paramedic uses coded language to communicate with his supervisor. You understood, 65,000 kilometers is €65,000. 310 meters, €310,000. From now on, Quentin Mugg knows that he is dealing with a big fish in the collection. He sets up a spinning device. Here is the ambulance, the real one, tracked by a surveillance camera. To obtain concrete evidence, the captain locates the paramedic's hideout. Then he hides a small spy camera. The trap will work. Here is the paramedic returning from his tour, bags in hand. His work tool is on the table. A storyteller. And off we go for a night of work. Count, sort, recount, condition. The bundles are piling up. For this task, the collector takes a small commission of barely 0.3% on the sums transported out of 20 million. That’s €60,000. All this for a single small hand from the network which operates throughout France. Do you have any idea how many people worked for this network? For the collection network itself, we identified four groups of collectors in France. That's when we understood that we were dealing with people offering a laundering service. And that's what makes these investigations so profitable, is that by working on a collector, you're obviously going to be able to track the funds of the traffic that you're investigating. But if you continue to monitor after he has transported his money, well he will go see other customers and you will discover other traffic in Brest, in Paris, in Lyon, in Bordeaux. Yes, it's sprawling. In fact, it's sprawling. because that’s all they do. Most of them had SNCF subscription cards and they traveled a lot by train. So that means they were going to raise a lot of money elsewhere. So, do we know the amounts of money collected solely with this cannabis trafficking network? Do you have a precise idea on this? This is the whole problem with these networks. This is because, in reality, drug trafficking is rarely carried out by check or bank card and therefore it is cash that circulates. We have documents which attest that around 250 million euros passed through their hands. 250 million euros! So these are very significant sums. These are low estimates. And which are completely hidden, which are underground. Yes, because it’s cash. Oh well, that's for sure, it's cash in the tens, hundreds of millions. Money from drug traffickers. And there, you tell them you have a good life, a little excitement . It's true. But this money quickly becomes cumbersome. The bags are piling up. Difficult to store them. We tried. So go and deposit it in the bank to see. This could end badly. So what would you do to get rid of tens of millions of euros in cash? Only a drug dealer could tell us that. In fact, we found one involved in this affair. But it is this actor who will play his role because the trafficker did not want to appear. We have obviously reproduced his testimony word for word. Can you tell us how much volume of cannabis you brought back to France? At my best, I could bring in up to two tonnes per month. And looking back, can you tell us how much money you made? I don't have pay slips to remember my income. But yes, I made a lot of money. I already had between 12 and 15 million euros of my own, stored away. Sheltered? Yeah. And what did you do with this money? You have to whiten it. You have to invest it. I only invest cash, but I think like a business manager. The ideal is to have annuities. So, I invest 50% of my money and 30% is put away for my old age. And then we still have a substantial lifestyle. And what are you investing in? Often in real estate, it is simpler in Morocco and Algeria. Have you ever laundered money in France? Yes, I invested in transport or telephony companies that needed liquidity. These companies now earn me between €15 and €20,000 per month. And for the rest ? in Morocco, it must bring me around €70,000. In Algeria, between €30 and €40,000 per month. Which means that you have income of around 100,000 euros per month? Yes that's it. It pays for the hard knocks, the absences. The long years in prison. More than €100,000 in cash per month which escapes tax. Investments in France and abroad. To do this, this trafficker uses the services of a shadowy man. In Arab countries, it is called Saraf. The Saraf is a kind of occult banker. Thanks to his collectors, he collects the money in France and redistributes it to Morocco and Spain where you need it. If I want 500,000 euros in Morocco, I give 500,000 euros to Saraf in Paris. And depending on the exchange rate, I can get the equivalent in Morocco from a trusted man. It's an amazing system, isn't it? It's the same principle as the banking system, except that it's done by telephone and with confidence. And you can have this money delivered to you like that? Around the world. I sometimes went on vacation to Dubai or the United States, everywhere. I avoided traveling with it, going through customs with large sums of money on me. I called my Saraf, and he gave me the money. So you have to trust him 100%, this boy. Or this girl. These bankers are people of all nationalities. I dealt with Chinese, Jews, Indians, Blacks. Frankly, it's multicultural. Money has no color, no smell. It's the equivalent of a multinational money laundering company. So what matters is trust? Confidence and money. You give cash, we give you cash back. Millions of euros in cash travel without ever leaving a trace. At cash, we had already heard about it, but we had never tried it. There, there is still €2,000. Come on, let's take you to Morocco, to the kingdom of Saraf, to test the system. On the plane, we have the choice between a Chaplin film, “The Vagabond”, still without a round, and this magazine with an advertisement ready-made for us: Paying and instantly transferring money is in the poached. Ah, it's off to a good start. Casablanca, economic capital of Morocco with its business district, only official, and its more informal souk. This is where we carried out our operation completely illegally. First, we need to change our euros into dirhams on the black market. Obviously. Come, come. From there, we'll shoot discreetly. Ok, you have €2,000. All right. In Morocco, cash is not a problem. It would even be more of a solution. Everyone comes! Everyone trading? With €2,000, we obtain 26,000 dirhams. It is with this cash that we will move on to phase two of the operation Return the money to Paris. For this, we found a contact. It's the gentleman with the red down jacket. Officially a seller of trinkets and paintings. This is your store. I have a small emergency if you can do me a favor... Negotiations begin. 2000 I don't know any more than I know the money I need in Paris. Except that our €2,000 seems very paltry to him. I know, but this is what you can do me a favor and make it available to me in Paris. So, you'll have to talk with your boss. Here it is. I need a small favor, I know I know 2000 is n't a lot, but I have a small medical emergency for someone in my family who needs a little cash and I I need to make €2,000 available in France quickly. What are the amounts you usually make? Her name is Sophie. His phone number 06.60... It's his French number. The boss calls Saraf and ensures that the cash will be delivered to Paris. But be careful, no question of talking about money on the phone. There must be 10,000 count, don't move. There must be another 10,000 there. Let's hope the money is in good hands in any case. Okay, now I trust you. So. No problem. Because it's for my mother. So that’s important. So this evening, around 8 p.m.? THANKS. I trust you of course. Before leaving, the boss gives us one last essential piece of advice in this type of operation . The best thing is that we didn't do anything. By the way. The boss took a 15% commission on our operation, or €300. The rate goes down when there is more money in the pipes. It remains to warn Sophie that so far, everything has gone well. Hello ? Yes, everything went well, that's it. Everything went well. Even if we don't hide it from you, we just left €2,000 to a stranger and now we can only hope that the carpets, or finally the euros, arrive in Paris. It took a little longer than expected. Sophie finally has an appointment in the near Paris suburbs. Sophie is her cover name. She is a journalist at Cash. This is where she has to collect our two rugs. Her real first name is actually Manon. Come on, Manon, we’re counting on you. Hello ? Her contact is right behind her. The laundromat's coup in a money laundering investigation. We wanted to avoid it at all costs, but reality is stronger than cash. Delivery of carpets. Um sorry, euros. That's it Perfect! Thank you so much. And now, it's over. Well, not for Manon who wants to check if it also works the other way between France and Morocco. From France to Morocco, from Morocco to France, money circulates without moving. It is at the heart of a clandestine financial system called In the Hawala system, we must imagine money as a raw material which is exchanged throughout the world with Saraf as banker. Its role is to balance thousands of transactions. In our example, between Nicolas and Manon, Saraf is delivering €2,000 from Morocco to France. To balance its accounts, Saraf must carry out a transaction of the same amount with other customers. Between France and Morocco. This is called a compensation system. To achieve this feat, Saraf therefore needs a lot of cash from both sides of the Mediterranean. Which means a lot of customers. And among its clients, people well established in Morocco for example. It's surprising, but the drug money that circulates in the Hawala system sometimes ends up in the pockets of businessmen Welcome to business class with the French Chamber of Commerce and Industry of Morocco, the CFCIM is the largest French Chamber of Commerce and Industry abroad. In Casablanca, this more than a century-old institution represents 4,000 companies. Here, we talk about ethics, performance always with professionalism. Led by big bosses like Jean-Marie Grosbois, director of the premises between 2013 and 2016. What do you mean, you don't know? Would you like to know more? Yes. Jean-Marie Grosbois, knight of the Legion of Honor, officer of the National Order of Merit. Photo. Mr. Grosbois is a public man. Here he is with Pierre Gattaz, the former boss of Medef, with Muriel Pénicaud, the current Minister of Labor and finally with the former President of the Republic François Hollande. Jean-Marie Grosbois is what we call a white collar worker, an industry executive who used the services of a Saraf, a secret banker. In 2013, he put €50,000 in the pipeline in order to recover them in Paris. It was there that he was spotted by the police. Jean-Marie Grosbois still lives in Casablanca, still in business. He refused to answer our questions on camera, but he agreed to see us. Second floor. From there we film with a hidden camera. Hello Mrs. Excuse me for disturbing you, I'm looking for Monsieur Grosbois please. Mr. Grosbois, what a pleasure to see you! Okay, you have a nice desk. I work for a press agency called Première ligne Télévision and which produces a report on the parallel economy for France 2. And your name appeared in a cash transfer case. Oh yes okay. Do you remember this story? So. And I wanted you to be able to explain to me first and confirm whether it was true or not. Why didn't you bring these sums of money with you to France? Obviously, it's a pretty practical system. And you still knew that it was illegal to use this system, I imagine? Didn't you ask yourself too many questions about the origin of the funds, for example when you were given €50,000 in Paris? The problem is that if I looked at the case a little, it is that the money that we gave you in Paris was money, drugs, drug trafficking. Turns out it came from drugs yeah. You now regret this use of this network. You were convicted, you got a fine I think... Oh, did you appeal? Mr. Grosbois actually appealed. He contests his conviction for money laundering, accompanied by a fine of €50,000 pending a final judgment, he benefits from the presumption of innocence. In any case you are in good shape, thank you for having us. And we won't bother you any longer. If we were interested in the case of Mr. Grosbois, it is because his money fed the same laundering network as that of drug traffickers. The same network with two principals, the Ech-Chaouti brothers. A beautiful family story. On the left, Abdelouahed, the youngest. On the right Noureddine, 36 years old at the time of the events, it was he who managed all the financial operations on behalf of his clients, in particular traffickers. He was the secret banker of the system, Saraf. Drug money is collected in every corner of France. But also in Europe thanks to collectors like the ambulance driver. The money recovered is then centralized in the Paris suburbs by an intermediary. This intermediary, like all the actors in the network, responds to the orders of the Ech-Chaouti brothers . Target of Captain Mugg's investigation. Can you give us a portrait of the Ech-Chaouti brothers? Yes, they are two young Moroccans. How old ? At the time they were in their thirties, a little over 30, it was interesting because one of the two, Noureddine, who really supervised the whole thing was him in Casablanca. He is the launderer from the point of view of the law, he is the compensator from the point of view of the thugs. The money changer who will take care of transforming euros into dirhams... It's hard for us to imagine... No, he's more of a sort of underground trader... You see, it's... . Hidden bankers or... in fact, we must understand, these are people who do not really see themselves as criminals. They are part of a centuries-old fund transfer system. Who will accept money from all walks of life, they have no particular predilection for drug money. They have an appeal, that's for sure for commissions. Their problem is being able to take commissions from as many people as possible, so as to make a living from it. The Ech-Chaouti brothers were sentenced by French justice to ten years of detention in 2017. So of course, we imagine that they are in prison. No, they are not in prison since they live in Morocco. They are Moroccan and for the moment, we have not yet managed to get our hands on them. So they escape taxes and prison. For now yes. But we don't know what tomorrow will bring. That's to say ? Well, that is to say that when the opportunity presents itself, international arrest warrants will be issued. We hope to get our hands on it one day or another. But Morocco does not extradite its nationals? So that means it's stuck here for the moment. And There you go. Thus, the man in the red jogging suit, convicted in absentia for aggravated money laundering and criminal association, is still at large. Ah! If only the French police had been allowed to do their job in Morocco, they could have located him in a morning. In Casablanca, Nourdine Ech-Chaouti is a completely respectable business leader . It's 10 a.m. Captain Mugg would surely have come to this business district. He would have seen this mailbox. It is one of Noureddine Ech-Chaouti's companies. Anyway, here, the whole building belongs to him. Around 12 p.m., he would surely have opened the door of the Baghdadi group, a real estate development company. Hello Mrs ! Excuse me for disturbing you, I came to contact Mr. Ech-Chaouti to see if it was possible to make contact. They know him perfectly. He is one of the associates of the Baghdadi group. Well, you have my phone number forwarded to you. THANKS. Bye Madam. Clearly, from 1 p.m., the police captain would have found his trace, like us. Hello ? Yes hello. Ah Noureddine Ech-Chaouti Hello, Sir. Yes. And you, how are you ? I stopped by one of your offices this morning to try to meet you and I wanted to talk to you a little about business, real estate investments. I wanted to know if we could possibly meet? Let's just say I'd rather tell you that when I see you. Where are you, Noureddine? Okay, well, we will never do business with the Saraf of our story. But we haven't finished talking to you about his affairs. Come on ! Always think whitening, but think bigger. In the depths of finance, the Ech-Chaouti brothers invented an unstoppable money laundering circuit for their client. This system allowed traffickers to reinvest hundreds of millions of euros in cash into the global economy. It happened in three stages. First stage drug money is transformed into gold, in coins and ingots. Gold, the object of all desire, easily negotiable, easily transportable. The operation took place in Belgium. You'll see, it's very clever. And Captain Mugg immediately understood the trick. Gold is still of interest when you are a launderer, because the volume of a smartphone roughly corresponds to a kilo of gold. A kilo of gold was €40,000 at the time. It is convenient for transportation. But then, how did Noureddine Ech-Chaouti go about it? His chief collector had found an associate called Georges Lautner? And this person offered a range of services and in particular made large quantities of gold available. Georges Lautner For the Ech-Chaouti brothers, he is the ideal partner. He accepts all cash transactions with open arms . Georges Lautner is a gold trader. He lives in Antwerp, Belgium. He declined our interview request. But you know us. We love contact. There, next to the chip shop, it's Georges. And in front of Georges, it’s us. Disguised as an investor. With Georges, we never saw each other. And yet here we go like good old friends. Are we going to Georges? Straight ahead ! a walk in Antwerp with Georges, filmed in complete discretion, is worth all the gold in the world. Here, they are everywhere. Gold, jewelry. And especially ingots. Even in the window. Diamond, obviously, it's the neighborhood. And around noon, we stopped there. Eat Italian. I think I'll have some ricotta cannelloni. Towards the end of the meal, Georges Lautner finally sits down at the table. He explains to us his role in the Ech-Chaouti network And what kind of volume were they? And that's where you made cash transactions. Ten kilos per week with customers is a lot. And how did they bring out... Oh, did you make an invoice? Invoices to launder millions of euros. Yes, but one day, Georges was sentenced to three years in prison for money laundering, criminal conspiracy, forgery and use of forgery. Have you been tried here? Can I ask you what kind of fine you had to pay? No, no, Georges, it's me. Don't insist, Georges. Really, please. The bill ? THANKS. As for Georges Lautner's invoices, here they are. Those used by the network of the Ech-Chaouti brothers. A beautiful cover to allow gold to travel with all the appearances of legality. They are issued by “Jacquo New” his company and addressed in particular to “Afti trading” a fake jewelry store, well, well... Based in Dubai. And that’s it, right? There, there are some for €95,400, only ingots, there for €150,500. Between 2012 and 2014 this happened several times a week, tens, even hundreds of kilos of gold purchased. Transformed into gold, the millions of the Ech-Chaouti brothers can now travel, travel in complete peace of mind thanks to George Lautner's bills. At the airport, the gold is taken care of by little hands. Here is a photograph taken without his knowledge by the police. Come on! The ingots embark for their final destination, where a golden sun shines even in the night. Dubai. Why Dubai? Why Dubai? Because it’s a cash economy like many others. The idea was to travel with the gold to Dubai to avoid administrative hassles. They had set up a company specializing in jewelry in Dubai. It's called a cover. They have they have a business model that must be followed. Dubai, a vertical tax haven, is above all one of the very first gold markets in the world. 25% of the entire planet's gold is bought or sold in Dubai and it has to shine, right? This is why the Ech-Chaouti brothers chose this destination. On site, this is the second stage of bleaching. They will sell the gold, coins and bars to recover the money in cash. For this, they have a new partner, a certain Yogesh. This merchant buys all the gold shipments from the Ech-Chaouti brothers. This Yogesh was never worried, nor even questioned by the police. In Dubai as in France. In 2014, however, Captain Mugg's teams listened to his conversations and remotely monitored gold deliveries. To approach Yogesh, he had to be discreet and change his identity once again. So we're going to pretend to be a gold seller. We film with a hidden camera. In Dubai, Yogesh is still a big buyer of gold today. I have been working in gold for a long time. My family has been in this business for 50 years. In what form will you bring back the gold? And how do you want to be paid? I believe gold can come in many different forms, but I mainly have 1 kilo bars. So these are ingots. It's perfect. You know, gold enters the country tax-free, so there is no problem. You're talking to me about ten kilos per month. No problem. I buy all types of gold, pure gold, coins... So everything works. At the time, I bought large quantities of between 150 to 200 kilos of gold per day. Do you mean per week? No no. 200 kilos per day. Oh yes, per day, okay. And when it comes to payment, you can pay me in cash. Yes, if you have pure gold. I work with cash and I pay cash. Ok. And this is how, thanks to Yogesh, gold is transformed back into cash. how much did the Ech-Chaouti brothers transport? Hard to say. The French police were only able to document 218 kilos of gold delivered to Dubai by plane, still worth 7 million euros. The Ech-Chaouti brothers reinjected these millions of drug money into the legal economy, particularly in France, on behalf of their clients. This is the third and final step of the bleaching operation. To carry it out successfully, the Ech-Chaouti brothers have a constellation of companies in the Emirates. Multi options General Trading. Point Break, General Trading. and Renade International. Renade International is managed by the younger of the two brothers based in Dubai. This company has a particularity: it does not have a bank account. But then, how do the Ech-Chaouti reinject cash into the real economy? Well, they will use the bank accounts of several exchange offices, including that of Al Fardan Exchange. Don't panic, we'll explain. The millions of drug money collected throughout Europe are transformed into gold in Belgium, then transformed back into cash in Dubai. The cash is then deposited into the Al Fardan Exchange bank account . From there, and by simple transfer, the money is sent all over the world. Renade International never appears in transactions. The Ech-Chaouti brothers' company has become untraceable. Now is the time to go and see how it works. We decide to open the door of Al Fardan Exchange. We're shooting with... Guess what? A hidden camera. Hello, I would like to inquire about cash transactions. Is it for a company? Yes, absolutely. Transactions will be made in cash. Can I drop it off at your place? Yes of course. We will take your cash and a transfer will be made in the name of your company. But from our bank account, is there a ceiling? No, no ceiling. Any amount can be sent. In what currency? Dollar, euro? Dollar, euro, pounds sterling. Almost all currencies. Is it quick and efficient then? Yes that's it. Fast and efficient because in Dubai, it is completely legal. Even today, the Ech-Chaouti brothers have this system operating at full capacity. We got our hands on previously unpublished documents concerning Renade International. Here are over 11,000 bank transfers. Cash is transferred to the accounts of thousands of companies around the world. Chinese, Korean, European. Look here at a transfer of $150,000. There, another one for $168,000. The money is also sent to around fifteen French companies, including this one based in Paris, to a Société Générale account. For example, on September 28, 2014, she received four transfers of several tens of thousands of dollars each. We contact the boss of this company. We were delighted to see this boss, but his council must have advised him to send us this email. At the same time, we contacted another French business manager who received two transfers. It has the merit of being clear, like our calculations. According to our documents which only concerns one exchange office. Renade International laundered 259 million euros for its clients between 2008 and 2015. 259 million reinvested in the global economy is not nothing. What we are talking about here is the benefit of traffic. It's not the turnover, it's what's left once we've sold the drugs and then the logistics, etc., etc. So that money remains there. This money will end up in the financial system. We were very surprised to discover that money from drug trafficking via Renade financed around fifteen French companies. Completely normal. Tell us how it is possible that this drug money ends up reinvested in legal companies in France? Did the money arrive on the account of the French companies? Yes, a textile company based in Paris for example. You see it here, received more than €720,000 between December 2013 and September 2014. A company which until very recently was still manufacturing silk scarves in Lyon received more than €160,000 from this company. There is also a chocolatier in Picardy, a garage, an agricultural cooperative. So, typically, that’s interesting. I don't know what it is about these companies, but let's imagine, for example, an ordinary merchant finds himself with, I don't know, a large sum of cash coming, let's say, from tax evasion or misuse of property. social. Yes ? This person has 1 million euros. He needs to make a payment to one of the companies you have on your table there. He's going to go see Saraf. He said: “Hey, can you transfer this money to me on the account of company X which is located in Lyon.” Textile company in France; silk company in Lyon, chocolatier, garage... There you go, and the Saraf: “There is no problem, I will send you a transfer from Dubai. I have a company there and you will just have to notify your supplier who will be paid by the Renade company. And the transfer is made like that. What would you say? Would you say that this company is a cover-up? Yes, it's a cover. The company does not have a bank account anyway. That is to say, it is quite intelligent because if you are a financial investigator and you see a transfer coming, for example, this transfer will not be in the name of Renade International. It will obviously be in the name of the stockbroker. So that means that Renade is a huge money laundering pipe and that it will then irrigate... No, but what surprises us, who will then irrigate the real economy in France too? Yes, that's the whole problem. And we say to ourselves that this is also one of the axes of globalization but that we do not see at all. It's true that money circulates quite freely and especially when it circulates in these occult circuits to finally end up flowing back somewhere to reintegrate the legal system. That's the whole principle of whitening. This means that money laundering is an activity that relies heavily on the internationalization of transactions in order to thwart or at least complicate investigations. And it’s true that the Ech-Chaouti brothers are still running. Not worried in Morocco, never prosecuted in Dubai. Captain Mugg's investigation stopped there, so we decided to continue the investigation on the trail of the same Moroccan Saraf. In Dubai, we discovered that one of the largest auditing firms in the world would have turned a blind eye to an operation by the Ech-Chaouti brothers. To tell you the rest of our story; we took a little trip to the countryside. After Dubai, it’s true that all this green does us good. Here we are in the..., in the middle of England. It's relaxing, isn't it? You can not find ? Well, not for everyone. We have an appointment with a gold market specialist. Since 2013, he has been at war with his former employer. He even had to flee Dubai in a hurry. It must be said that his ex-employer is not just anyone. A global finance and auditing giant “Ernst & Young”, EY in English. A behemoth with a turnover of 35 billion dollars established in 150 countries and therefore in Dubai. But let's get back to our... In 2013, Amjad Rihan is based in Dubai. He carries out audits for Ernst & Young. In February, Ernst & Young was commissioned by the Kaloti company to carry out an industrial audit. In Dubai, Kaloti is an institution. It is the largest gold refiner in the emirate. Kaloti holds 50 to 55% of the market in Dubai. The audit was to determine whether the Kaloti company had implemented a customer management system worthy of the name. The Ernst & Young team examines Kaloti from every angle. She goes to the headquarters located in this house on the 35th floor. She also visits the Kaloti foundry. In this industrial zone, gold is refined and ingots are cast. Then stamped. Kaloti thus produces 300 tonnes of gold per year. But Amjad Rihan's team of auditors wants to know more about its suppliers. As evidenced by this note, they visited the group's main counter, located in the gold souk, where the bars arrive. And that's where they discovered strange practices. The visit is organized by Oussama Kaloti, the son of the big boss. The scene reportedly took place on the second floor of the Gold Center. Right here, where we went with a hidden camera. In these offices, the boss's son would have launched into a strange demonstration. The visit was supervised by Osama Kaloti. He took my team to his office and there the auditors discovered a stack of silver bars on a table. Mr. Kaloti grabbed one and showed it to my team and said, “What do you think this is?” My colleagues said money because it looked like money. Osama Kaloti started laughing. He took a piece of metal and scraped one of the bars removing a thin layer of silver. And this bar was indeed gold. For a listener, it's shocking. Is this bad? It's fraud. Supply chain fraud. And their response was: “That’s how we do business with Moroccans.” They disguise gold into silver bars and export them that way. So, in your opinion, who could these Moroccans be who disguise ingots like stolen cars? Let's see, Moroccans who launder their money in Dubai. It's time to tell you how the former Ernst & Young auditor crossed paths with Renade International. the Society of Ech-Chaouti Brothers. We asked Amjad Rihan to come to Paris with his documents. In its files, the suppliers of the Kaloti group, the transactions carried out, and the amounts for the year 2012. We will now compare this data with the elements of our investigation. I found a reference. Let's look. And it’s Abdelouahed Ech-Chaouti. He owns a company called Renade International. He is officially the boss. I remember the name now because it was one of Kaloti's Moroccan suppliers who disguised the silver bars. There are a lot of transactions with Kaloti. Yeah, I see that. Yes, there are a lot of transactions every month. Almost every day ! In any case, they are very common. There are actually a lot of them. We spent time on these documents. We counted the transactions, we checked everything. For the year 2012, Renade International sold more than 3000 kilos of gold to Kalloti. The figure is indeed in tonnes. More than three and a half tons in one year, 3,500 kilos of gold sold. It is enormous ! Yes, it is much more than all the gold exported annually by Morocco. It's worth $146 million over one year. And the majority of these transactions are made in cash. It's practical, isn't it? As simple as that. Suppliers enter with suitcases full of gold and leave Kaloti with suitcases full of cash. Clearly, with the Ech-Chaouti brothers it’s still a story of suitcases. THANKS. And this time in the suitcases. THANKS. There is $146 million. THANKS. Just for the year 2012. Thank you. Thanks to Renade International, Moroccan Sarafs have once again reinvested mountains of cash in the legal economy. However, even in Dubai, there is an anti-money laundering rule. Well then, what happened with Kaloti? As a journalist, we did not have an answer to this question. To meet a Kaloti official; we had to put on our best gold seller costume again. And there, we too got an appointment in the little house on the 35th floor. We are received by one of the group's bosses. In summer polo, the gentleman has a turnover of 10 billion dollars. Listening to him, he doesn't know about cash. But he loves gold. Would you be interested in gold that comes from Africans? It depends on which country. The Morocco ? Morocco is not a problem. If you have all the export documents. Are you able to pay cash? Not only by check or bank transfer. I thought that as the first player in the market, that wouldn't pose a problem. Yes, it's true. We are the biggest player in the market, but we have more rules to follow than others. And is that something that has changed? No, we've been doing this forever. We follow the rules scrupulously. According to this Kaloti boss, the group does not pay in cash. We thought we'd check it out anyway. Come. We return to the Kaloti counter where the ingots arrive. And there, when you ask to be paid in cash, it's not the same thing at all. Would a delivery of 70 kilos per week from Morocco suit you? No problem. And I will be paid in cash? Yes of course. In this office? Yes, you call us a day in advance and we will give you the cash. Is there a ceiling? No None. No cap. Finally, Cash payments? Amjad Rihan identifies them from the start of his audit. Because for the year 2012, the Kaloti group provided him with all his payments in cash. There is the $146 million received by Renade International. But look at this company, they took in $485 million in cash. And then this one, more than 773 million. Transactions never declared. In 2012, Kaloti paid the astronomical sum. Can you repeat the question? Have you ever paid in cash? No. Our compliance department would not accept it. We obviously contacted Kaloti and after several weeks, the group finally responded through its lawyers. When the Ernst & Young auditor discovered Kaloti's cash transactions, when he identified the Moroccan gold suppliers, what do you think he did? Just his job. He then writes this report, detailing everything he considers to be irregularities. He talks about high-risk suppliers, falsification of documents and risks of tax evasion. Then he sends everything to his management. In this document, we describe the results of our audit fairly. Our assessment was a violation of all protocols, zero tolerance. And what does that mean? For a group, this is the worst evaluation. As a result, Ernst & Young immediately made the decision to help Kaloti conceal this assessment. Ernst & Young will then water down the audit and falsify the results. This is Amjad Rihan's version. So we sifted through the different versions of the report. Ernst & Young would have deleted several passages which implicated Kaloti. Ernst & Young removed the word Morocco. They removed the term “silver covered ingot” and in a very short time, the results of our audit were buried. Kaloti was subsequently declared fully compliant by Ernst & Young. How do you analyze Ernst & Young's reaction? The group knew the facts and the results of our audit. It's all in my report. We alerted them several times. So from my point of view, what Ernst & Young did is immoral, unprofessional and illegal. Amjad Rihan refuses to sign the final report. He claims to have then been dismissed by his superiors. Its hierarchy, precisely, here it is. In the top management of Ernst & Young he is one of those who, according to Amjad Rihan, would have favored the interests of Kaloti. Hervé Labaude's approach was clear: it was about helping the client and burying the results of the audit. But let me play you a conversation I had with Hervé Labaude Hervé! Hello Amjad How is Hervé? I'm fine and you ? In September 2013, Amjad Rihan tried one last time to assert his truth. In my opinion, the report has been completely watered down. Really. On cash it is not transparent. On Morocco, the way you rewrote it is not transparent either. Amjad! Things are getting back to normal. We calmed the relationship with Kaloti. And I'm very comfortable with the way the issue was handled. We fulfill our duty and respect the commitment that binds us by contract. In fact, I was just doing my job as a partner in the company. By refusing to sign, you have not done your duty, Amjad. After this telephone conversation, Amjad Rihan ended up resigning from Ernst & Young. He filed a complaint against his former employer before the British courts. The trial should take place during 2020. According to our information, the Frenchman Hervé Labaude has retired and left London. We try to contact him on his cell phone. Yes, hello sir, are you Hervé Labaude? Are you Hervé Labaude? You are not Hervé Labaude? Hervé Labaude hangs up on us. Yes, Elise, it was the right number. We also contacted Ernst & Young, who refuses any interviews, but sent us this email. What a pity ! We would have loved to talk to them about cash and bullion. But in fact, what happens to the two Ech-Chaouti brothers? The latest news is that they are still between Morocco and Dubai and leading the lives of respectable businessmen. There is no doubt that these secret bankers have no end-of-month problems. The United Nations estimates the amount of money laundered worldwide each year at $1.6 trillion . Enough to carry many, many, many suitcases. That’s the end of this new issue of Cash Investigation. We will meet again very quickly for a new investigation. Excellent end of the evening on France 2. Thank you. Good evening.