Title: Money Laundering Ring Busted in Equatorial Guinea: €10M from Public Works Laundered in Mallorca
Date: May 23, 2024
Dismantling a Major Money Laundering Ring
A notorious money laundering ring, accused of laundering over €10M from public works contracts in Equatorial Guinea, has been dismantled by the Spanish Tax Agency, Portuguese Judiciary Police, and Europol. The following individuals have been charged with money laundering and tax fraud:
- Ring organizer, a Dutch citizen residing in Palma
- Eight other individuals
Two suspects have been arrested.
Operation ‘Run out’: Uncovering the Scam
Early 2021: Spanish and Portuguese authorities started investigating a Portuguese construction company’s suspicious public works contracts in Equatorial Guinea. The investigation uncovered possible bribes totaling over €10M being diverted to the suspects’ assets.
Concealing Funds in the Spanish Real Estate Market
Through a web of front and instrumental companies, investigators from the Spanish Tax Agency believe they have found evidence of these funds being hidden in the Spanish real estate market:
- Complex corporate structures
- Entities in Cape Verde, Liechtenstein, Cyprus, Belize, and the Netherlands
- Funds laundered through Spain and Holland
Seizure of Documents, Assets, and Electronic Devices
A search of the Dutch citizen’s residence in Palma revealed:
- 13,000 documents
- 43 electronic devices
The investigators have also seized:
- Bank accounts worth over €200,000
- Luxury vehicles
- High-end watches
- Ownership rights to a golf club in Mallorca
- Lifetime use club membership valued at over €100,000
The seizure order was granted for the above properties, totaling over €5M.
Intricate Web of Transactions and Agreements
A conspiracy to commit money laundering and tax fraud was uncovered through:
- False consulting contracts and invoices issued by instrumental companies
- Approximately 10% of the value of public contracts in Equatorial Guinea being diverted and laundered
A Liechtenstein Trust at the Heart of the Operation
The investigation revealed that the corporate network reached its apex with a Liechtenstein trust, which served as the ultimate beneficiary and supervisor for a trust controlled by the Dutch citizen.
Major Investments in Mallorcan Real Estate Developer and Dutch Businesses
The investigation showed that a considerable portion of the diverted funds was invested in a Mallorcan real estate developer. Administrators of the developer agreed to transfer control of their main properties, worth over €3.5M, for the investments.
Another portion of the funds was invested in the Netherlands, using shell companies to mask investments in a well-known cosmetic brand and multiple Dutch businesses, worth over €7M.
International Cooperation and Complex Investigation
The investigation has required significant international cooperation and the examination of extensive financial, commercial, and corporate operations, along with detailed analysis of the physical and digital documentation obtained.