€2BN Money Laundering Scandal: 18 Arrested in Italy and Latvia

Background

Amid growing concerns over financial fraud and money laundering in Europe, authorities in Italy and Latvia have announced the arrest of 18 individuals in connection with a complex money laundering scheme that funneled approximately €2BN through a Lithuanian financial institution.

The Money Laundering Scheme

According to reports from Eurojust - the European Union’s judicial cooperation body - the Lithuanian financial institution in question offered money laundering services to thousands of criminals across the European Union. The fraudsters allegedly made fictitious financial transactions via a web of enterprises run by strawmen.

“The financial institution offered money laundering as a service to thousands of criminals across the EU, by making fictitious financial transactions via the web of enterprises, which were run by strawmen. It advertised its alleged consultancy services online and was set up in Lithuania in 2016 by an Italian-based OCG.” [Eurojust Spokesperson]

The Criminal Organization

The criminal organization behind the scheme, believed to be based in Italy, reportedly set up the financial institution in Lithuania as early as 2016 to carry out the illicit activities. The ringleaders of the operation were also among those apprehended during the coordinated raids on Tuesday.

The Scale of the Financial Fraud

The scale of the financial fraud is unprecedented, with estimations suggesting that €2BN was laundered through the Lithuanian institution alone. The total amount of funds illegally moved throughout Europe as a result of this single money laundering operation is yet to be determined.

The Investigation and Future Developments

Those apprehended during the raids are currently undergoing questioning, and further details about the financial transactions and alleged criminal organization are expected to be released in the coming days. This latest development in the ongoing financial fraud investigations underscores the need for increased cooperation and vigilance from European authorities to combat money laundering and other financial crimes across the continent.