Financial fraud was the main subject of a conference recently held in the European Parliament in Brussels on 9 November. The topic is current in light of recent revelations of the “Paradise Papers”, which discloses in detail the use of complex and secretive money channelling and laundering techniques via shell companies in tax havens.

The panel and audience consisted of MEPs, journalists and various representatives from NGOs. One of the panellists, Editor of EU Today, Gary Cartwright, raised the concern of a growing number of “fake NGOs” in Brussels, who are sometimes funded the people or organisations who they at the same time defend or advocate for. In some cases, these financial backers are involved in criminal activities or ongoing court trials, which make the matter even more severe.

One case that was particularly debated during the conference involves the embezzlement of up to $10 billion by Kazakh businessman Mukhtar Ablyazov, who is currently residing in France and awaiting court judgement. Cartwright explained that “Abylazov may be behind the funding of the Open Dialogue Foundation”, an NGO headquartered in Poland with office in Brussels. “There are more questions than answers related to the funding of ODF”, said Cartwright.

The NGO now uses its resources to lobby, defend and assist, amongst others, Mr. Abylazov himself in his ongoing court case. Jarek Jakimczik, a polish journalist who also participated in the panel, explained that the NGOs activities are financed by companies owned by Mr Abylazov with money that Mr Abylazov embezzled from Kazakh BTA Bank. “Other donors include online gambling companies and organisations that are flagged and sanctioned by the West”, Jakimczik continued.

The case is controversial, as Mr. Abylazov may attempt to seek asylum in Belgium or other European countries in the coming weeks, with the NGO defending his case. In the audience, Henri Malosse, former President of the European Economic and Social Committee commented that “better mechanisms must be put in place by the European commission to trace the funding of Brussels based NGOs, especially those who abuse the system.”