Azerbaijani Elite’s $2.9bn Money Laundering Scheme Uncovered: How Britain’s Corporate Landscape Was Used to Hide Illicit Funds

An explosive investigation by the Guardian has uncovered a hidden $2.9bn financial scandal involving Azerbaijan’s ruling elite and a network of British companies, revealing a complex web of money laundering, lobbying, and luxury purchases in Europe.

Leaked Data Reveals 16,000 Secret Transactions

Between 2012 and 2014, over 16,000 secret transactions took place, with some of the funds finding their way to European politicians, journalists, and companies. The leaked data was shared with the Organized Crime and Corruption Reporting Project (OCCRP), the Guardian, and other media partners, and it may just be the tip of the iceberg.

The Role of Britain in Money Laundering

Many of these funds were funneled through Britain. £7 million was spent in the country alone on luxury goods and private school fees. The transactions went through Europe’s leading banks, including Danske Bank, which processed the payments via its branch office in Estonia.

Danske Bank’s Acceptance of Illicit Practices

Danske Bank acknowledged that money laundering and other illegal practices had taken place and first noticed the suspicious transactions in 2014. Estonia’s financial regulator admitted that its systems designed to stop money laundering at the branch had failed.

Azerbaijan: A Backdrop of Political Dynasty, Human Rights Abuses, and Electoral Manipulation

With a deeply entrenched political dynasty, human rights abuses, and allegations of electoral manipulation, Azerbaijan offers an intriguing backdrop for such financial schemes. Once a Soviet republic, Azerbaijan has succumbed to an oil-rich elite that has reportedly siphoned billions out of the country through British-incorporated vehicles to reward lobbyists, buy luxury items, and launder cash into the European economy. This covert operation has come to be known as the ‘Azerbaijani Laundromat.’

Politicians Named in the Leaked Documents

Among those named in the leaked documents are former members of the European Parliament, such as:

1. Eduard Lintner: A German ex-MP and member of the Christian Social Union, who maintained that he received the money for his nongovernmental organization and did not personally benefit.
2. Luca Volonté: The Italian former chair of the center-right group, who could not be reached for comment and is under investigation for money laundering and corruption in Milan.

Bokova’s Connection to Husband’s Business Dealings

The revelation that Kalin Mitrev’s wife, Irina Bokova, the director-general of UNESCO, received honors from Azerbaijan and hosted a photo exhibition at UNESCO’s headquarters in Paris, entitled “Azerbaijan – A Land of Tolerance,” has raised eyebrows.

Bokova said she had no knowledge of her husband’s business affairs and denied any conflict of interest, as her UN role is to develop sound working relations with all member states, including Azerbaijan. However, her husband’s business dealings have raised questions about the ethics and transparency of interactions between UN officials and high-level politicians and businesspeople.

International Community Faces Implications of Money Laundering Scheme

As questions mount, the international community is grappling with the implications of this extensive money laundering scheme and the role of Europe as a haven for such illicit financial activity. Azerbaijan’s ruling family, international lobbyists, and European entities will be under close scrutiny in the days, weeks, and months to come.