Police in Latvia assert a significant money laundering operation dismantled
In a significant development, an ongoing investigation in Latvia has uncovered an organized group suspected of laundering millions of euros through corporate structures and concealed ownership. The criminal proceedings were initiated in December 2023 by the Department for Combating Serious and Serial Crimes of the Main Criminal Police Department of the State Police and the Riga District Prosecutor's Office.
The group is believed to have laundered approximately half a billion euros of criminally obtained cash over an extended period. The funds were primarily used to purchase real estate, invest in real estate construction, and acquire movable property, including luxury goods.
The focal point of the investigation is the suspicion of providing resources to a Russian military aggressor state, a crime classified under Latvian law. The authorities have seized over half a million euros in cash and several real estate properties connected to the group's production sites during searches.
The case aligns with the EU's anti-money laundering regulations, particularly the 6th AML Directive, aimed at improving the detection and prevention of money laundering through real estate and other assets.
The investigation has led to the detention of nine individuals in 2024, with birth years ranging from 1962 to 1987. Non-cash assets worth approximately 15 million euros were seized during the criminal proceedings, including real estate (some in Spain), vehicles, shares, precious metal and gemstone jewelry, collector coins, and luxury watches.
The organized group is also suspected of establishing a security company, funded by criminally obtained funds for its establishment and operation. The State Police had information about the group's criminal activities dating back more than 10 years, with money laundering activities starting as early as 2012.
The law imposes penalties including deprivation of liberty for a period of three to 12 years, with or without confiscation of property, and probation supervision for a period of up to three years. However, no suspect names have been disclosed by the police at this stage. The authorities continue legal proceedings against the involved parties.
[1] Source: State Police of Latvia press release [2] Source: European Commission press release on the 6th AML Directive
- The ongoing investigation in Latvia, initially launched in December 2023, has exposed a criminal organization suspected of laundering half a billion euros, with the illegally gained funds used in various industries such as real estate, finance, and luxury goods purchases.
- The European Union's anti-money laundering regulations, specifically the 6th AML Directive, are applicable to this case, as it involves money laundering through real estate and other assets.
- The investigation has expanded beyond Latvia, with Spanish real estate properties among the non-cash assets seized from the group, and a security company suspected of being funded by their criminal activities also coming under scrutiny.
