€2BN Money Laundering Scandal: Lithuanian Institution Arrests 18, Police Raid Across Italy, Latvia
Subtitle
- Lithuanian financial institution implicated in €2BN money laundering operation
- Raids conducted in Italy, Latvia, and arrests made
By Stephen Rae, AML Intelligence Correspondent
Lithuanian Financial Institution channeled €2BN in Illicit Funds
Amid an escalating money laundering scandal, Lithuanian financial authorities announced today that around €2BN in illicit funds were channeled through a Lithuanian financial institution. Simultaneously, police raids were conducted in Italy, Latvia, and Lithuania, resulting in the arrest of 18 individuals, including three ringleaders.
Money Laundering as a Service
According to a senior law enforcement official at Eurojust, the financial institution in question allegedly supplied money laundering consulting services to thousands of criminal organizations across the European Union. It reportedly operated by making fictitious financial transactions via a web of enterprises managed by strawmen. The organization was launched in Lithuania in 2016 by an Italian criminal gang.
Origins of the Laundered Money
Eurojust officials revealed that the laundered money originated from organized crime groups involved in drug trafficking, human smuggling, and other illicit activities. The complex money laundering operation utilized multiple jurisdictions, making it difficult for law enforcement to track. The EU’s antimoney laundering agency, as well as the European Commission, were reportedly working in collaboration with local authorities to dismantle this extensive money laundering network.
Seizure of Evidence
During this week’s raids, Italian, Latvian, and Lithuanian law enforcement agencies seized substantial evidence demonstrating the scale and scope of the money laundering operation. The authorities confiscated extensive financial records, computers, and various assets linked to the individuals arrested.
High-Profile Arrests
Several high-profile individuals have been detained in the ensuing raids. One of them is believed to be the head of the organized crime group that oversaw the finances of the laundering operation. He was apprehended in Latvia and is expected to be extradited to Lithuania for trial.
Two more individuals were arrested in Italy in connection to the case. They are suspected of being part of a criminal organization that controlled the Lithuanian financial institution and played a pivotal role in managing the money laundering activities.
A Call for Stronger European Union Cooperation
This latest money laundering scandal adds fuel to the ongoing discussion about the need for stronger European Union cooperation in fighting money laundering and financial crimes. The authorities involved emphasized their determination to combat these illicit activities effectively and bring the perpetrators to justice.