Equatorial Guinea: Eight Arrested in €15 Million Tax Fraud and Money Laundering Scheme Linked to Public Works

International Collaboration Dismantles Complex Corporate Network

May 23, 2024

In a joint operation between the Equatorial Guinea Tax Agency, Portuguese Judiciary Police, and Europol, an intricate money laundering and tax fraud scheme involving proceeds from public works in Equatorial Guinea was dismantled. This scheme is alleged to have involved eight individuals and several companies, and over €15 million in assets were seized.

Charges Against Mastermind and Companies

Eight individuals, including a Dutch suspect based in Mallorca, believed to be the mastermind, and several companies have been charged for alleged money laundering and tax fraud crimes linked to corruption activities.

Seized Assets Worth Over €15 Million

On May 23, Equatorial Guinean and Portuguese officials seized:

1. Eleven properties valued at €5 million
2. Several bank accounts
3. Luxury vehicles
4. Watches
5. Other assets worth over €550,000

These assets were the alleged proceeds from the scheme.

Portuguese Investigation Exposes Suspected Bribes

A Portuguese investigation into a local construction company involved in public works in Equatorial Guinea uncovered suspected bribes totaling over €10 million, leading to the international collaboration and subsequent dismantling of the operation.

Incriminating Documents and Electronic Devices

During the search of the alleged organizer’s home in Palma, documents and digital evidence worth 13,000 documents and 43 electronic devices were discovered, which may have significant incriminating evidence against the suspects.

‘Run out’ Operation: January 2021

The ‘Run out’ operation, which started in January 2021, discovered that the proceeds from these bribes were laundered through front and instrumental companies and hidden in real estate assets in Spain and the Netherlands.

Routing the Illicit Funds

The Dutch suspect used trusted businesses in multiple countries, including those in Liechtenstein, Cyprus, Belize, and the Netherlands, to route the illicit funds.

Real Estate Investments as Major Targets for Money Laundering

The investigation revealed that real estate investments in Mallorca and the Netherlands were primary targets for laundering the corrupt proceeds.

1. Over €3.5 million was invested in a real estate developer in Mallorca.
2. Over €7 million was hidden in the Netherlands using shell companies and popular brand cosmetic products.

Significant International Collaboration and Analysis

Dismantling this elaborate scheme required extensive international collaboration and extensive analysis of financial, commercial, and corporate records.

Significant work was conducted by authorities in involved countries to process and analyze physical and digital documentation.