The Times: Money Laundering Investigated in Iceland Skip to content

The Times: Money Laundering Investigated in Iceland

The Times Online reported yesterday that investigators in Iceland, who are looking into the collapse of Iceland’s financial system, are reexamining allegations that the failed banks may have been involved in money laundering.

Copyright: Icelandic Photo Agency.

The article said that documents to that end are believed to have circulated between officials in Iceland, Denmark and the Serious Fraud Office in London last week.

“These aspects can always come up in investigations of economic crimes. We are looking into it along with other aspects,” Iceland’s special prosecutor Ólafur Thór Hauksson told Fréttabladid.

Danish newspaper Ekstra Bladed published a series of articles about the Icelandic economy in the autumn of 2006, claiming that Kaupthing’s subsidiary in Luxembourg (which was known as KB Bank at the time) had placed funds from Russian tycoons in tax havens and laundered money. Kaupthing sued the newspaper and a settlement was reached.

Russian businessman Boris Berezovsky, who, according to Fréttabladid, is a sworn enemy of Russian Prime Minister Vladimir Putin, claimed in an interview with Sky in February this year that Moscow was using Iceland to launder “dirty money” before investing in other countries.

The office of the special prosecutor is currently investigating 49 cases. The investigation of seven cases has been completed. No one related to the failed banks has been called in for questioning specifically because of money laundering, Hauksson said.

Click here to read the article in The Times Online and here to read more about the ongoing investigation of the office of the special prosecutor.

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