Spain smashes massive fraud ring

Arrests were made in Madrid and Lisbon

Spanish authorities say they have smashed one of Europe's biggest-ever money laundering rings.

This magnificent operation is... one of the most important carried out in Europe

Angel Acebes
Spanish Interior Minister

Police arrested 101 people from Spain, Colombia and the Dominican Republic following a two-year investigation, the Spanish Interior Ministry said.

Officials seized 542 kg (1,195 lb) of cocaine and 9.5 million euros ($10.12m), believed to be used in drug trafficking.

"This magnificent operation is without doubt one of the biggest ever in Spain and certainly one of the most important carried out in Europe," Spanish Interior Minister Angel Acebes told reporters.

Some of those arrested worked in bureaux de change.

Drug proceeds

Mr Acebes said investigators had discovered that suspects had laundered a total of 237.5m euros from drug trafficking.

The money was derived from cocaine trafficking

The operation to smash the ring began in early 2001, and many of those detained were arrested in a series of raids over the past 20 months.

Suspects laundered money by buying dollars at bureaux de change, where accomplices worked, Mr Acebes said.

The network comprised a number of autonomous groups unconnected to each other and each given a certain amount of money to launder, he said.

Millions of euros were sent back to Colombia, according to the interior minister

The announcement came amid a crackdown on crime by the Spanish Government, which has introduced tougher penalties for repeat offenders and illegal immigrants.

Recent opinion polls show many Spaniards blame foreigners in Spain for much of the country's crime.