Lithuania’s Financial Institutions Exposed: €2bn Money Laundering Scandal Uncovered
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A massive money laundering scheme involving a Lithuanian financial institution has been busted, with authorities seizing €11.5 million in assets and freezing bank accounts across three countries.
The Investigation
The investigation, led by Eurojust and Europol, resulted in the arrest of 18 suspects, including three main ringleaders, during raids in Italy, Latvia, and Lithuania. The scheme is believed to have laundered €2 billion over seven years, with funds injected into the Latvian and Lithuanian economies through the purchase of real estate and luxury vehicles.
The Accused Financial Institution
The Electronic Money Institution (EMI) was set up in 2016 by an Italian-based Organised Crime Gang (OCG). It advertised its consultancy services online, offering money laundering services to thousands of criminals across the EU. Two main suspects, residing in Lithuania and Latvia, were arrested along with a third suspect who defrauded Italian authorities of €5 million in public funds.
The Role of Eurojust
Eurojust, the EU Agency for Criminal Justice Cooperation, brought together prosecutors and judges from across the EU to tackle serious cross-border crime. The agency supported the setting up of a joint investigation team between national authorities involved and coordinated simultaneous actions in three countries.
The Outcome
The operation is a result of long-term cooperation across Europe, with Europol providing support since January 2022. Eurojust Vice-President Margarita Šniutytė-Daugėlienė praised the collaboration, stating that it shows the importance of well-coordinated and prepared approaches across Europe.
The Impact
This latest development sends a strong message to criminal networks that they will be pursued regardless of borders. The case serves as an example of Eurojust’s role in transnational judicial cooperation and its commitment to tackling fraud involving public funds.
Key Takeaways
- €2 billion laundered over seven years
- Funds injected into Latvian and Lithuanian economies through real estate and luxury vehicle purchases
- 18 suspects arrested, including three main ringleaders
- Assets worth €11.5 million seized and bank accounts frozen across three countries
- Long-term cooperation between Eurojust, Europol, and national authorities led to the successful operation