In one of Germany’s largest ever anti-smuggling operations, more than 2 200 officers from the Federal Police (BPOL) and the customs authority’s Financial Control of Undeclared Work (FKS) searched 104 properties across eight federal states on 30 September 2026. Acting on 100 warrants issued by the Berlin public prosecutor in the case code-named “BAO Purgatio”, investigators arrested ten suspects and froze assets worth € 106 million. The alleged ringleader, a 50-year-old Berliner, is accused of having brought hundreds of workers—mainly from Ukraine and Georgia—into the country on tourist visas before putting them to work in hotels and cleaning companies under exploitative conditions. According to the Federal Police, the network forged residence documents, operated shell subcontractors and laundered cash through fictitious invoices to obscure the real employment relationships. The case highlights how people-smuggling and payroll fraud have converged in Germany’s tight labour market. By under-declaring wages and social-security contributions, the gang was apparently able to undercut legitimate service providers, creating unfair competition and reputational risk for companies that rely on outsourced cleaning services. In response, the customs service reminded businesses that they are jointly liable for social-security violations within their supply chains. The raids come just weeks after the Bundestag passed amendments to the Federal Police Act that bolster investigative powers against organised smuggling. They also illustrate the growing use of data from the new Schengen Entry/Exit System (operational since April 2026) to map suspicious travel patterns. Employers are advised to review subcontracting chains, ensure copies of valid residence permits for all on-site personnel and conduct random compliance audits. Failure to do so carries fines of up to € 500 000 and, in serious cases, criminal charges under § 266a of the Criminal Code for withholding wages.
