Financial Crime World

Major Money Laundering Scheme Unraveled: Ten Million Euros Traced back to Equatorial Guinea’s Public Works

May 23, 2024

In a groundbreaking operation, Spanish, Portuguese, and Europol authorities dismantled an intricate money laundering network involving ten million euros emanating from corruption activities related to public works in Equatorial Guinea.

Two Detainees and Eight Accused

  • Two key suspects, including a Dutch citizen residing in Palma, were taken into custody.
  • Six other individuals and several companies are facing charges in the ongoing investigation.

Seized Assets and Documents

  • Authorities seized assets worth over 5.6 million euros, including 11 properties, bank accounts, vehicles, watches, and other valuable belongings.
  • Over 13,000 documents and 43 electronic devices were seized at the residence of the plot’s organizer.

Origins of the Case

  • The operation, known as ‘Run out,’ began in early 2021 when Spanish and Portuguese authorities joined forces.
  • The investigation followed a parallel Portuguese case involving a local construction company and allegations of corruption in Equatorial Guinea.

Ten Million Euros in Question

  • The Portuguese investigation implicated the possible diversion of ‘bribes’ totaling around ten million euros into personal assets.

Complex Corporate Structure

  • The investigation revealed a complex international corporate network to channel illegal commissions.
  • This structure included trusts and companies based in countries like Cape Verde, Liechtenstein, Cyprus, Belize, and Holland.

Hidden Investments in Real Estate and Cosmetics

  • A significant portion of the diverted funds was hidden in Spain through real estate investments.
  • A major developer in Palma de Mallorca agreed to transfer control of prime properties worth over 3.5 million euros in exchange for this investment.
  • Substantial investments were made in the Netherlands using shell companies to conceal the purchase of prominent cosmetic brands worth over seven million euros and other Dutch businesses.

The Investigation’s Complexities

  • The investigation’s complexities included investigating complex money laundering schemes and analyzing financial, commercial, and corporate operations.
  • Multiple information requests from third countries were required to unravel the intricacies of the case.