An ongoing investigation in three countries has led to the arrest of a Ukrainian entrepreneur suspected of laundering illicit funds through real estate in France and Monaco. French, Ukrainian and Monegasque authorities are working together to uncover a large scale money laundering scheme involving profits from the illegal sale of arms and of shares in a defence company. EUR 57 million of illicit profits were frozen in France and are intended to be returned to Ukraine.
The suspect is the son of a prominent entrepreneur in Ukraine, who owned a defence company. Following the Russian invasion, profits began to decline, and the owners are suspected of having illegally sold their majority stake to representatives of a foreign state.
To hide the illegal profits gained from the sale, the owner’s son bought properties, in several countries including France and Monaco. He is believed to have subsequently laundered hundreds of millions of euros in profits.
In France alone, he is suspected of having laundered over EUR 57 million between 2010 and 2023. He also laundered profits from illegal arms sales by his father, the owner of the defence company. Soon after opening a money laundering investigation, the French authorities froze the suspects’ assets worth EUR 57 million with the intention of returning them to Ukraine.
Investigations continued in the framework of a joint investigation team (JIT) set up at Eurojust, facilitating the judicial cooperation between the three countries. French, Ukrainian and Monegasque authorities worked together with support from Eurojust to establish a judicial strategy and exchange information on the illegal activities.
Their collaboration resulted in the arrest of the son in Monaco on 28 April. The French, Ukrainian and Monegasque authorities are currently questioning him as part of the JIT. During the operation, several documents of value to the investigation were discovered in Monaco. The owner of the defence company is already on trial in Ukraine for crimes against national security and is now suspected of money laundering as well.
The following authorities carried out the operations:
- France: JUNALCO (National Jurisdiction against Organised Crime); Public Prosecution Office Paris; ONAF (National Office against Fraud)
- Ukraine: Prosecutor General’s Office; Security Service of Ukraine
- Monaco: Prosecutor General’s Office of Monaco; Directorate of Public Safety
