Financial Crime World

Azerbaijani Laundromat: £2.9 Billion in Dirty Money ROUTED THROUGH European Banks, EXPOSED

The Azerbaijani Laundromat, a complex money-laundering scheme orchestrated by Azerbaijan’s elite, was unveiled by the Organized Crime and Corruption Reporting Project (OCCRP) in 2017. Between 2012 and 2014, over £2.9 billion was funneled through European companies and banks. OCCRP, in coordination with European media outlets, published a series of articles detailing the shocking scheme.

Media Investigation

An initial leak of internal bank documents exposed approximately 16,000 transactions, many of which were opaque and linked to influential persons in Azerbaijan. The transactions predominantly went through four UK-based shell companies and Danske Bank’s Estonian branch.

The funds, believed to have been utilized for buying silence on human rights violations in Azerbaijan, promoting government views, and creating a positive image abroad, were distributed to Western politicians, international organizations, and key European figures. Recipients include:

  • Azerbaijan’s first deputy prime minister, Yaqub Eyyubov, and his family.
  • Government representatives, such as Ali Nagiyev, responsible for combating corruption, and Orkhan Sultanov, head of foreign intelligence.
  • Hungary’s Prime Minister Viktor Orbán, receiving transactions worth over €9 million shortly after the extradition of a convicted Azeri axe-murderer to Azerbaijan.
  • Italian politician Luca Volontè, who was paid €2.39 million to organize support for Azerbaijani officials within the Council of Europe. -Various prominent Bulgarian, Hungarian, Swedish, and American figures.

European politicians reportedly received significant donations, influencing their actions and decisions in favor of Azerbaijani interests. The Europan Stability Initiative (ESI) had previously reported corruption by Azerbaijani officials in 2012, some of whom were implicated in the laundromat scheme.

Laundered Money and Transactions

Approximately £1.4 billion of the funds were transferred from an account held in the International Bank of Azerbaijan (IBA) with a shell company linked to the Aliyev family. Some of the money came directly from government ministries and organizations, like the MODIAR, Ministry of Emergency Situations, and Special State Protection Service. The following companies also participated in the money laundering process:

  • Baktelekom MMC
  • Azarbaycan Metanol Kompani
  • Arash Medical Production
  • Offshore entities

Most of the payments went to shell companies in the UK with substantial amounts paid to businesses in the UAE and Turkey, suggesting a connection to the Russian Laundromat. Both schemes used the same British-based limited partnerships, shared bank accounts, and employed similar formation agents, indicating a potential overall money laundering network.

Criminal Probes and Sanctions

Following the exposé, there were several investigations and sanctions against those involved:

  • Denmark, Estonia, Bulgaria, and the Council of Europe launched investigations,
    • Bulgarian representative to the EBRD, Kalin Mitrev, was investigated for receiving €425,000 from the laundromat scheme, but no wrongdoing was found in his tax affairs.
    • Swedbank CEO, Birgitte Bonnesen, who was later charged with gross fraud, lost her position due to the laundromat scandal.
    • The National Crime Agency (NCA) froze several bank accounts linked to the Azerbaijani laundromat and seized £15 million from Javanshir Feyziyev’s family under “reasonable grounds” suspicion of money laundering.
  • In the United States, Democratic Congress Representative Henry Cuellar and his wife were indicted in 2024 for money laundering, conspiracy, and bribery charges, allegedly related to the laundromat investigation. They exchanged legislation favorable to Azerbaijan for bribes and a pro-Azerbaijan speech. Two political advisors and an Azerbaijani woman were also indicted for conspiring to launder over £200,000 in bribes.