A police raid in Germany aimed at biker gangs in Berlin and Brandenburg prompted by the EncroChat files. Photo: AP
A police raid in Germany aimed at biker gangs in Berlin and Brandenburg prompted by the EncroChat files. Photo: AP
A police raid in Germany aimed at biker gangs in Berlin and Brandenburg prompted by the EncroChat files. Photo: AP
A police raid in Germany aimed at biker gangs in Berlin and Brandenburg prompted by the EncroChat files. Photo: AP

More than 2,600 arrested in UK after criminal EncroChat communication network cracked


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British authorities have arrested more than 2,600 people and seized about 14 tonnes of drugs using intelligence gathered after cracking a secret messaging service used by criminals to organise smuggling operations.

Police across Europe have used the information secured by French and Dutch detectives who secretly monitored the EncroChat service for weeks from May 2020 before its administrators realised the system had been infiltrated.

The information has been used by police forces across Europe to aim at criminal gangs leading to heavy prison sentences for groups who organised multimillion pound shipments and talked about attacking their rivals in gangland hits.

Officials described the cracking of EncroChat as one of the most significant developments against gangs that could hit their operations for years.

Britain’s National Crime Agency said that police and other agencies had seized 5.6 tonnes of class A drugs, 165 guns and more than £75 million in cash during operations against gangs. Courts have convicted 260 people, it said.

EncroChat had 60,000 users worldwide with the operators behind the service selling special customised Android phones for €1,000 ($1,190) each with a six-month contract costing €1,500.

Criminals spoke freely about their illegal operations on the subscription-only service, believing the system could not be infiltrated.

Those jailed included drug dealers Matthew Wraight, 37, and Mark Bannister, 47, who went by the names of “Rokafella” and “Goldgame” who discussed attacking their rivals.

‘Goldgame’ told his colleague in the monitored messages: “You've left it long enough… Its time to get physical… Physical.”

He also spoke of the threat of long prison terms if they are caught. “This is serious business mate,” he wrote. “Big money big bird [jail time]."

They admitted their roles in July and were jailed. But the sentences were extended last week - Wraight receiving more than 16 years and Bannister more than 12 – after they were considered too lenient.

Earlier this year, Albanian Ervin Patru, 42, was jailed for 15 years over a cocaine smuggling racket after it emerged that he had shared 14,000 lines of messages about selling drugs.

Messages were also found that linked him to a previous arrest of a fellow Albanian who was caught with four kilograms of cocaine following a high-speed police chase.

Patru – who used the handle ‘veteranbeer’ spoke of four “packets of ours” that were seized and expressed relief that a “fallen” associate had not talked.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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UAE currency: the story behind the money in your pockets
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Updated: December 20, 2021, 10:59 AM