Brussels Crackdown: 7,500 Companies Dissolved in 5 Years Signals Success in Fighting Social Fraud and Money Laundering

2024-01-06 06:59:00

More than 7,500 companies have been dissolved in Brussels in five years, a positive signal that criminal organizations which combine social fraud with laundering money from drug trafficking are starting to desert the capital, L’Echo reported on Saturday. Many of them, however, transferred the headquarters of their fraudulent companies, hounded by the courts, to other regions of the country, mainly Flanders.

In five years, the number of companies dissolved by the French-speaking company court amounts to 7,533, figures which are constantly increasing and which reached 2,313 in 2019. On the side of the Dutch-speaking court (which includes Hal-Vilvoorde), the Figures are also increasing, 760 companies had been dissolved in 2022, according to the latest available figures.

The phenomenon of the transfer of ghost companies to Flemish or Walloon Brabant recently materialized with the discovery of the address of the headquarters of more than 400 fictitious companies in Leeuw-Saint-Pierre.

This trend follows the fight orchestrated since 2018 by a coalition of Brussels authorities as part of a platform called “Company dumping”.

“In 2019, Brussels posed a gigantic problem, with around 10,000 ghost companies. The stock of these dormant companies is today very low,” rejoices Paul Dhaeyer, the president of the French-speaking Brussels business court. He specifies that a ghost company “is not only money from drug laundering, but also a risk of unfair competition”.

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