Cracking Down on EUR 2 Billion Money Laundering Network in Lithuania

The enforcement authorities in Italy, Latvia, and Lithuania collaborated to dismantle a large-scale money laundering operation involving a Lithuanian financial institution. It is estimated that approximately EUR 2 billion was laundered by two main suspects through a network of shell companies, offering online money laundering services to criminals, who are now in custody.

In addition, a third main suspect was arrested for defrauding the Italian authorities of EUR 15 million in public funds, which were also laundered through the same network connected to the Lithuanian financial institution. On 27th February, approximately 250 judicial representatives and law enforcement officers were mobilized, resulting in the arrest of 18 individuals, including the 3 main suspects.

The coordinated efforts of Eurojust and Europol were instrumental in facilitating and coordinating these international activities. The financial institution at the core of the money laundering scheme provided laundering services to thousands of criminals across the EU through fictitious financial transactions conducted by enterprises run by strawmen. Allegedly set up in Lithuania in 2016 by an Italian-based organized crime group, the institution was operated by the two main suspects residing in Lithuania and Latvia.

The laundered funds, including EUR 15 million obtained fraudulently from Italian national authorities, were infused into the economies of Latvia and Lithuania through real estate and luxury vehicle purchases. Investigations revealed that this money stemmed from a range of criminal activities, including tax evasion, cyber fraud, and organized crime such as drug trafficking.

The crackdown also uncovered a tax evasion scheme where a tax consultant orchestrated fraudulent building bonuses from Italian authorities for 72 individuals without carrying out any eligible renovations or energy-saving measures.

The investigations into this organized crime group began in 2021, leading to the closure of the electronic payment institution in Lithuania in 2022 due to non-compliance with money laundering prevention regulations. Additionally, the prompt response from Latvian and Lithuanian authorities resulted in the freezing of millions in funds, real estate properties, and luxury vehicles.

The involvement of Eurojust also led to the establishment of a joint investigation team between national authorities and the restitution of over EUR 3 million of illegally obtained public funds to Italy. Mr. Burkhard Mühl, the Head of Europol’s European Financial and Economic Crime Centre, emphasized the importance of close cooperation between law enforcement agencies and Europol in disrupting illicit financial flows and dismantling criminal networks.

The ongoing operations against this organized crime group showcase the long-term intensive cooperation across Europe, with the latest actions carried out at the request of the respective authorities in Italy, Latvia, and Lithuania.

This united effort demonstrates the effectiveness of the ‘follow the money’ approach in combating transnational criminal threats and frauds related to public funds, highlighting the need for pooling resources, expertise, and intelligence to disrupt criminal activities.

In conclusion, the joint efforts of the authorities in Italy, Latvia, and Lithuania have dealt a significant blow to a sophisticated money laundering network that has been operating for several years. The success of this operation underscores the importance of international cooperation in combating transnational criminal activities and upholding the integrity of financial systems in the EU.