Widening Russia Money Laundering Scandal Hits European Banks

Raiffeisen Bank International AG led declines in European banking shares after a fresh round of revelations — dropping as much as 15 percent — after Bill Browder’s Hermitage Fund said the bank ignored warning signs that would have helped stop the laundering of funds from Russian criminal activity. About 43 million euros were paid to the Rabobank account of Dutch yacht builder Heesen for construction of two boats, the newspaper said, while approximately 190 million euros went through bank accounts at an ABN Amro unit that later became part of Royal Bank of Scotland. In Austria, Raiffeisen Bank International’s predecessor “ignored suspicions” that should have triggered reports to the authorities, thereby abetting the money laundering linked to the Magnitsky case, Hermitage said.

Source: www.bloomberg.com