Lithuanian Financial Institution Accused of Laundering €2 Billion in Dirty Money
Major Financial Institution Accused of Money Laundering
A major financial institution in Lithuania, Electronic Money Institution (EMI), has been accused of offering money laundering services to thousands of criminals across the European Union. According to prosecutors at Eurojust HQ in the Hague, EMI allegedly made fictitious financial transactions via a web of enterprises run by strawmen and advertised its alleged consultancy services online.
Suspects Arrested
Police in Italy, Latvia, and Lithuania arrested 18 suspects, including three ringleaders, during coordinated raids on Tuesday. The institution was led by two main suspects who resided in Lithuania and Latvia and laundered the proceeds of various criminal activities, including:
- Tax evasion
- Cyber fraud
- Fake bankruptcy
- Drug trafficking
Investigation Reveals Large-Scale Money Laundering
The laundered money included €15 million from unlawful building bonuses provided by Italian national authorities, which were given for renovation and insulation works but never carried out. The main perpetrator was a practising tax consultant who arranged the awarding of bonuses for 72 other individuals aware of the abuse.
A third main suspect was arrested for defrauding the Italian authorities of €5 million in public funds, which were laundered via the same network of enterprises centered around EMI in Lithuania. In total, 55 properties were raided and €11.5 million in assets and bank accounts frozen.
International Cooperation Led to Success
Eurojust, the EU Agency for Criminal Justice Cooperation, brought together prosecutors and judges from across the EU to tackle serious cross-border crime. The agency supported the setting up and funding of a joint investigation team between national authorities involved and facilitated the restitution to Italy of over €3 million of illegally obtained public funds.
Europol also played a role in supporting the case, working closely with national investigators to uncover the magnitude and complexity of the activities carried out by the organized crime group (OCG). The operations against the OCG are the result of long-term intensive cooperation across Europe between the three countries involved.