Financial Crime World

Title: European Crime Syndicate Launders €2BN Through Lithuanian EMI in Coordinated Raids

Major European Money Laundering Bust

By EU Crime Desk

  • Italian, Latvian, and Lithuanian authorities arrested 18 individuals as part of a €2BN money laundering operation run through a Lithuanian Electronic Money Institution (EMI).
  • Three key suspects were among those arrested.

EMI Offered Money Laundering Services Across EU

  • Prosecutors at Eurojust stated that the EMI “advertised its consultancy services online and was set up in Lithuania in 2016 by an Italian-based Organized Crime Gang (OCG).”
  • The EMI is alleged to have created a web of shell companies and strawmen to offer money laundering services to thousands of criminals across the European Union.

Range of Criminal Proceedings Involved

  • Laundering activities involved tax evasion, cyber fraud, fake bankruptcy, and organized crime such as drug trafficking.
  • Some illicit funds were injected into the Latvian and Lithuanian economies by purchasing real estate and luxury vehicles.

Authorities’ Response

  • Italian authorities uncovered the operation in 2021 and involved their counterparts in Latvia and Lithuania through Eurojust in 2022.
  • The financial institution was shut down, its banking license revoked, and bankruptcy procedures initiated in Lithuania due to non-compliance with anti-money laundering regulations.
  • In Latvia, authorities identified and froze millions in funds, real estate properties, and luxury vehicles.

Role of Eurojust and Europol

  • Eurojust and Europol played vital roles in coordinating and facilitating international activities alongside national authorities.
  • Joint investigation teams were established, and a coordination centre was set up at Eurojust to support simultaneous actions in the three countries.
  • Europol deployed three experts to support investigative measures and handle contributions via its secure communication channels.

Importance of Cross-Border Cooperation

  • The OCG’s actions highlight the importance of cross-border cooperation as European authorities continue to target fraud involving public funds and uphold the role of Eurojust in transnational judicial cooperation.

Authorities Involved

  • Italy: Public Prosecutor’s Offices of Naples and Lecce, Guardia di Finanza of Naples and Lecce.
  • Latvia: Prosecutor General’s Office, Rīga Judicial Region Prosecution Office, and the 1st Unit of the Economic Crime Enforcement Department of the Central Criminal Police Department of the State Police.
  • Lithuania: Vilnius Regional Public Prosecutor’s Office, and Vilnius County Police Headquarters.

Stay tuned for updates on this developing story.