European Organized Crime Ring Launders €2BN Through Lithuanian Financial Institution
By AML Intelligence Correspondent
Arrest of Suspects and Seizure of Assets
In a coordinated operation, authorities in Italy, Latvia, and Lithuania arrested 18 suspects, including three ringleaders, for their involvement in a criminal organization that funneled approximately €2 billion through a Lithuanian financial institution over the past seven years.
- 18 suspects arrested
- Three main ringleaders in custody
- Seizure and freezing of €11.5 million in assets
Criminal Activities and Money Laundering Services
The financial institution, an Electronic Money Institution (EMI) based in Lithuania, was allegedly used by the criminals to launder proceeds from various criminal activities.
- Criminal activities: tax evasion, cyber fraud, fake bankruptcy, and drug trafficking
- Online money laundering services
Investigation and Disclosure
Prosecutors at Eurojust HQ in the Hague disclosed that some of the €2 billion was acquired via a global network of shell companies and then laundered through the EMI, which allegedly offered money laundering services online to thousands of criminals across the EU.
International Cooperation and Coordination
Eurojust, the EU Agency for Criminal Justice Cooperation, and Europol, both based in the Hague, facilitated international cooperation and coordination during the action day.
Seizure of Assets and Execution of Warrants
The financial and judicial authorities in Lithuania had closed down the electronic payment institution earlier in 2022 for non-compliance with money laundering prevention regulations.
- Seizure and freezing of assets
- Bank accounts
- Luxury vehicles
- 55 properties identified and searched
Apprehension of a Third Main Suspect
A third main suspect was apprehended for defrauding the Italian authorities of €5 million in public funds, which were then funneled through the same web of enterprises linked to the Lithuanian EMI.
Significance of the Operation
The multinational operation involving the Public Prosecutor’s Offices of Naples and Lecce in Italy, the Prosecutor General’s Office, Rīga Judicial Region Prosecution Office, 1st Unit of the Economic Crime Enforcement Department of the Central Criminal Police Department of the State Police in Latvia, and the Vilnius Regional Public Prosecutor’s Office and Vilnius County Police Headquarters in Lithuania, demonstrated the importance of a well-coordinated and prepared approach against transnational criminal networks.
Effective Tackling of Financial Crimes
The collaboration among Eurojust, the involved countries, and Europol proved that they can effectively tackle fraud involving public funds, with no borders for justice and a shared commitment to combating financial crimes.
Continuation of the Investigation
As the investigation continues, additional details regarding the operation may become available. Stay tuned for further updates from AML Intelligence.