Tobacco: OLAF joins forces to dismantle multimillion euro illicit cigarette supply chain

Press release no 16/2026
PDF version 

• 20 million cigarettes and 38.4 tonnes of tobacco leaf and cut tobacco seized, worth estimated €10 million 
• Guns, cash and 18 vehicles seized
• 50 people arrested in 23 searches across Spain  

OLAF can reveal it was involved in an operation that succeeded in dismantling two international organisations based in Spain, involved in the manufacture, distribution and trafficking of counterfeit tobacco products. 

The operation took place last month and involved Spain’s Guardia Civil, Poland's Central Bureau of Investigation, Portugal's National Republican Guard, Lithuania's Customs Criminal Service and Europol. Coordination between all participating agencies was carried out by OLAF and Europol. Authorities seized more than more than 20 million cigarettes and 38.4 tonnes of tobacco leaf and cut tobacco with a preliminary estimated value of more than €10 million. In addition, officers confiscated 18 vehicles, manufacturing equipment, encrypted electronic devices, €170,000 in cash, and several firearms.

Speaking about the operation, OLAF Director-General, Petr Klement said: “While smoking is dangerous, smoking counterfeit cigarettes is even worse. On top of the harm to health, every illicit cigarette robs taxpayers and rewards organised crime. That’s why OLAF is there, to detect illicit trafficking and to contribute with cross-border intelligence and coordination.”

OLAF provided timely operational intelligence to the competent national authorities in EU countries on the movement of tobacco precursors, machinery, vehicles and other materials destined for the illicit cigarette factory. This intelligence supported and guided national investigations, enabling authorities to monitor the illicit logistical activities and take coordinated investigative action.

OLAF intelligence exchanged led to the identification of additional targets who had not previously been known to the investigation. Throughout the operation, OLAF ensured effective operational coordination and facilitated the timely exchange of information among the participating authorities, strengthening cross-border cooperation and enhancing the overall effectiveness of the investigation.

During the operational phase, officers carried out 23 searches at homes, commercial premises and industrial warehouses across the provinces of Alicante, Cuenca, Huelva, Murcia, Seville and Toledo. A total of 50 people were arrested, including two individuals who have since been handed over to the Polish authorities.

The investigations remain ongoing, and further operational action cannot be ruled out.

Read the Guardia Civil press release 

OLAF mission, mandate and competences:

OLAF’s mission is to detect, investigate and stop wrongdoings related to EU funds.

OLAF fulfils its mission by:

• carrying out independent investigations into fraud and corruption involving EU funds, so as to ensure that all EU taxpayers’ money reaches projects that can create jobs and growth in Europe;
• contributing to strengthening citizens’ trust in the EU Institutions by investigating serious misconduct by EU staff and members of the EU Institutions;
• developing a sound EU anti-fraud policy.

In its independent investigative function, OLAF can investigate matters relating to fraud, corruption and other offences affecting the EU financial interests concerning:

• all EU expenditure: the main spending categories are Structural Funds, agricultural policy and rural development funds, direct expenditure and external aid;
• some areas of EU revenue, mainly customs duties;
• suspicions of serious misconduct by EU staff and members of the EU institutions.

Once OLAF has completed its investigation, it is for the competent EU and national authorities to examine and decide on the follow-up of OLAF’s recommendations. All persons concerned are presumed to be innocent until proven guilty in a competent national or EU court of law.

For further details:

Pierluigi CATERINO
Spokesperson
European Anti-Fraud Office (OLAF)
Phone: +32(0)2 29-52335  
Email: olaf-mediaec [dot] europa [dot] eu (olaf-media[at]ec[dot]europa[dot]eu)
https://anti-fraud.ec.europa.eu
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