Financial Crime World

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Financial Crime Examples in Lithuania Exposed as International Authorities Crack Down on Massive Money Laundering Scheme

In a major crackdown, authorities from Italy, Latvia, and Lithuania have arrested 18 individuals, including three main suspects, and frozen over EUR 11.5 million in assets and bank accounts as part of an operation to dismantle a massive money laundering scheme.

Background Information

The investigation began in 2021 and revealed that a financial institution set up in Lithuania in 2016 by an Italian-based organized crime group (OCG) had been offering money laundering services to thousands of criminals across the EU. The OCG laundered millions of euros from various criminal activities, including tax evasion, cyber fraud, and drug trafficking.

The Scheme

The institution made fictitious financial transactions via a web of enterprises run by strawmen. The OCG injected the proceeds into the Latvian and Lithuanian economies through real estate purchases and luxury vehicle sales.

  • Key elements of the scheme:
    • Fictitious financial transactions
    • Use of strawmen to hide the true owners of companies
    • Laundering millions of euros from various criminal activities
    • Injection of proceeds into the Latvian and Lithuanian economies through real estate purchases and luxury vehicle sales

Uncovering a Massive Fraud Scheme

The investigation also uncovered a massive fraud scheme involving so-called building bonuses worth EUR 15 million provided by Italian authorities. The main perpetrator, a practicing tax consultant, arranged for 72 individuals to receive these bonuses despite no renovations taking place at the properties in question.

  • Key details of the fraud scheme:
    • Building bonuses worth EUR 15 million
    • Perpetrator was a practicing tax consultant
    • Bonuses were received by 72 individuals despite no renovations taking place

International Cooperation

Eurojust and Europol played key roles in facilitating and coordinating the international efforts. Eurojust supported the setting up of a joint investigation team between national authorities and coordinated simultaneous actions in the three countries.

  • Key aspects of international cooperation:
    • Joint investigation team set up by Eurojust
    • Coordinated simultaneous actions in Italy, Latvia, and Lithuania
    • Support from Europol experts deployed to Latvia and Lithuania

Conclusion

The success of this operation highlights the importance of cross-border cooperation in combating financial crime. The collaboration between authorities from Italy, Latvia, and Lithuania demonstrates the effectiveness of a well-coordinated approach across Europe.

  • Key takeaways:
    • Importance of international cooperation in combating financial crime
    • Effectiveness of a well-coordinated approach across Europe

Authorities Involved

The operation was carried out at the request of and by authorities from Italy, Latvia, and Lithuania, including:

  • Public Prosecutor’s Offices of Naples and Lecce
  • Guardia di Finanza of Naples and Lecce
  • Prosecutor General’s Office
  • Rīga Judicial Region Prosecution Office
  • 1st Unit of the Economic Crime Enforcement Department of the Central Criminal Police Department of the State Police
  • Vilnius Regional Public Prosecutor’s Office
  • Vilnius County Police Headquarters