Lithuania Grapples with Financial Inclusion and Crime as €2bn Money Laundering Scheme Uncovered

A Massive Money Laundering Scheme Worth Approximately €2 Billion Has Been Uncovered in Lithuania

A massive money laundering scheme worth approximately €2 billion has been uncovered in Lithuania, highlighting the country’s struggle with financial inclusion and crime. The scheme was led by two main suspects who resided in Lithuania and Latvia, and involved an Italian-based Organised Crime Gang (OCG).

A Complex Web of Shell Companies

According to investigators, the OCG laundered millions of euros through a complex web of shell companies over the past seven years. The money was generated from various criminal activities, including:

• Tax evasion
• Cyber fraud
• Fake bankruptcy
• Drug trafficking

Part of the proceeds were injected into the Latvian and Lithuanian economies via the purchase of real estate and luxury vehicles.

International Investigation and Arrests

The scheme came to light after a series of coordinated raids in Italy, Latvia, and Lithuania resulted in the arrest of 18 suspects, including three main ringleaders. The authorities also froze millions of euros in assets and bank accounts, as well as confiscated properties worth €11.5 million.

Eurojust’s Role in the Investigation

Eurojust, the EU Agency for Criminal Justice Cooperation, played a key role in facilitating the international investigation. The agency brought together prosecutors and judges from across the EU to tackle serious cross-border crime. Eurojust supported the setting up of a joint investigation team between national authorities involved and set up a coordination centre to support simultaneous actions in the three countries.

A Testament to International Cooperation

The operation against the OCG is a testament to the importance of well-coordinated and prepared approaches across Europe in tackling transnational judicial cooperation. As Eurojust Vice-President Margarita Šniutytė-Daugėlienė stated:

“This collaboration really shows the importance of a well-coordinated and prepared approach across Europe… It is a clear example of the role Eurojust plays in transnational judicial cooperation.”

Investigation Initiated by Italian Authorities

The investigation into the OCG was initiated by the Public Prosecutor’s Offices of Naples and Lecce in Italy in 2021, involving counterparts in Latvia and Lithuania via Eurojust. The authorities in Lithuania had already closed down the electronic payment institution involved in the scheme due to non-compliance with money laundering prevention regulations.

A Significant Blow to Financial Crime

The operation against the OCG is a significant blow to financial crime in Lithuania and highlights the need for continued cooperation between national authorities to combat cross-border criminal activity. As Europol Director Rob Wainwright noted:

“Today’s action day demonstrates the power of international cooperation in tackling serious and complex crimes.”