Billion-Dollar Laundering Scheme Rocks Moldova
A massive money laundering scheme has been uncovered in Moldova, with estimated losses between $600 million and $1 billion. The scam involved several banks, including Three Moldovan Banks (BEM, BS, and Unibank), which were used to launder funds through a complex web of transactions.
The Scheme
According to an investigation by Kroll, at least 81 bank accounts were established in two Latvian banks to facilitate the laundering of money. The scheme employed various techniques, including:
- Mixing of funds
- Layering
- Other money laundering schemes
Those Involved
The authorities have identified several individuals and groups involved in the fraud, including the so-called “Shor Group,” which played a key role in the scam. However, the names of those responsible for the administration and execution of the fraudulent scheme will not be disclosed to avoid compromising the ongoing investigation.
Government Involvement
The Moldovan government has been accused of being aware of the fraud and using it to their advantage. In 2014, the government adopted legislative amendments that allowed for state aid to commercial banks in “situations of systemic financial crisis.” The amendments were later used to provide financial assistance to troubled banks, including those involved in the laundering scheme.
In November 2014, a secret government meeting decided to provide financial assistance worth 9.5 billion lei (approximately $600 million) to several “needy” banks. The sources of funding and the identity of the banks were not disclosed at the time.
Concerns Over State Aid
Experts have expressed concerns that the state aid might be an attempt by interested parties to improve the financial situation of the robbed banks at the state’s expense. The National Bank of Moldova (NBM) was working on measures to save one of the major banks from bankruptcy, likely BEM, in the spring of 2014.
Current Situation
The authorities have taken control of the Three Banks and introduced state administration in some of them. However, the investigation is ongoing, and it remains unclear how much of the laundered money was recovered or what measures will be taken to prevent similar frauds in the future.
Statement from Former Prime Minister Iurie Leancă
“I am confident that the truth about ’theft of the billion’ will eventually come out. The investigation is ongoing, and we must ensure that those responsible are held accountable.”
Expert Analysis
“This scandal highlights the need for stronger regulation and oversight in the banking sector,” said a financial expert. “The Moldovan authorities must take immediate action to prevent similar frauds from happening in the future.”