French Money Laundering Probe into Andrej Babis over $22M Property Deal
French investigators are currently examining former Czech Republic prime minister Andrej Babis for suspected money laundering in relation to the acquisition of a luxurious $22 million estate in Southern France.
Probe Details
The Central Office Against Corruption, Financial and Fiscal Offenses launched an investigation in February into Babis’ purchase of a 9.4-acre estate called “Chateau Bigaud” in Mougins, near Cannes. Sources familiar with the matter told Le Monde that the probe centers around the possible laundering of tax fraud proceeds.
According to the International Consortium of Investigative Journalists (ICIJ) and their partner Le Monde, the sale was first exposed as part of the Pandora Papers investigation last fall.
##Background on the Pandora Papers
The Pandora Papers, an investigation based on the leaked documents of 14 offshore financial services providers, disclosed that Babis, a billionaire businessman and politician, had used a network of shell companies to secretly acquire the property through a British Virgin Islands company, Blakey Finance Ltd. The funds were then channeled, disguised as a back-to-back loan, to a Babis company in Washington, D.C., which then forwarded the funds to a Monaco subsidiary, SCP Bigaud. No records of the deal were found in official Czech or French documents.
##Asset Declarations
As of 2013, neither the chateau nor the companies involved in its ownership were mentioned in Babis’ mandated asset declaration forms, as required by Czech law, obtained by ICIJ’s Czech partner Investigace.cz.
##Time Frame and Statutes of Limitation
Although the alleged deal dates back to 2009, French investigators are probing the possible money laundering and concealment of the funds’ origin. However, the time frame may impact the investigation, as various statutes of limitation apply.
##Previous Denial
Neither Babis nor his representatives have commented on the ongoing French investigation. Babis has previously denied any allegations, insisting that his dealings were legal.
##Background on Andrej Babis
Babis, the founder of the centrist ANO (Czech for “Yes” and an acronym translating as “Action of Dissatisfied Citizens”) political movement, made his fortune through the Agrofert conglomerate. He entered Parliament in 2013 vowing to tackle unemployment, corruption, and increase transparency and tax revenues. Babis later served as finance minister before becoming prime minister from 2017 to 2021.
During the Pandora Papers controversy last year, Babis’ ANO party narrowly lost the Czech Republic’s parliamentary election, with some media speculating that up to 8% of its supporters switched their votes due to the disclosures.
##Other Monaco Property and Speculation
The Pandora Papers investigation also uncovered another Monaco company Babis used to acquire a $6.7 million property near Chateau Bigaud in 2010. SynBiol, one of Babis’ Czech firms, listed the Monaco companies among its subsidiaries in 2018 financial statements, and the firms were merged with a SynBiol subsidiary in 2020. A representative for SynBiol reportedly stated that their transactions had been conducted in full compliance with applicable legislation.
##Czech Presidential Election
Amid speculation about Babis’ potential bid in the Czech presidential election next year, the billionaire has yet to make an official announcement.