Title: “Lithuanian Financial Institution Allegedly Laundered €2BN in Criminal Proceeds: An EU-wide Crackdown”

By AML Intelligence Correspondent

In a Europe-wide operation on Tuesday, law enforcement agencies in Italy, Latvia, and Lithuania arrested 18 suspects, including three ringleaders, in connection with a Lithuanian financial institution suspected of laundering approximately €2BN in criminal proceeds over the past seven years.

A Hub for Money Laundering Services

The Electronic Money Institution (EMI), a Lithuanian financial hub for money laundering services, allegedly allowed thousands of criminals across the European Union to make fictitious financial transactions through a web of shell companies. The scheme, led by two Lithuanian and one Latvian mastermind, reportedly accepted a wide range of illicit earnings and received around €2BN in funds.

Range of Illicit Earnings

Some of the laundered money was reportedly injected into the economies of Latvia and Lithuania via the purchase of real estate and luxury vehicles. Roughly €15 million originated from fraudulent building bonuses issued by Italian authorities, with none of the renovation work taking place or the applicants being the legitimate building owners. A tax consultant led this scheme, arranging for 72 individuals to apply for these bonuses.

Additionally, another organized crime group, run by a third main suspect, was arrested for defrauding Italian authorities of an additional €5 million in public funds. These funds were then laundered via the EMI in Lithuania.

Seizure of Assets and Bank Accounts

During the joint raids, authorities froze €11.5 million in assets and bank accounts linked to this organized crime group. Europol and Eurojust played significant roles in facilitating and coordinating international efforts.

Timeline of Investigations

Investigations into this criminal network began in 2021 following reports of suspicious transactions. In 2022, Lithuanian authorities closed down the electronic payment institution, stripped it of its banking license, and initiated bankruptcy proceedings due to non-compliance with money laundering prevention regulations.

Eurojust’s Role

Since January 2022, Europol has been working closely with national investigators to unravel the intricacies of the criminal organization’s activities. During the action day in 2022, Europol deployed experts and analysts to support the investigations and provided intelligence through secure communication channels.

Statements from Eurojust Officials

Vice-President of Eurojust and Lithuanian National Member, Ms Margarita Šniutytė-Daugėlienė, the Italian National Member, Mr Aldo Ingangi, and the Latvian National Member, Ms Dagmāra Skudra, jointly commented: “This operation highlights the importance of a well-coordinated and prepared approach across Europe. Eurojust’s role in transnational judicial cooperation is well demonstrated by this collaboration, proving that we have no borders and that we will continue to work closely together to ensure justice is served and prevent fraud involving public funds.”

Years of Cooperation among European Nations

This operation follows years of intensive cooperation among the European nations involved.