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*home* Financial Crime Investigation Service under The Ministry of the Interior of the Republic of Lithuania

Investigation

FCIS focuses on the disclosure and investigation of large-scale, sensitive and cross-border criminal acts adversely affecting the national financial system.

FCIS INVESTIGATES

  • international and domestic criminal acts related with the fraud and avoidance of value added tax (VAT), excise duties, income tax and other taxes as well as fraudulent management of accounts;
  • criminal acts related to the illegal receipt and use of the EU support funds;
  • legalisation of the proceeds of crime (money laundering) and illicit enrichment;
  • criminal acts in the field of swindling and misappropriation or squandering of property in such financial institutions as banks and credit unions and manipulating the prices (fraud) in the energy sector.

IN THE CENTRE OF OUR ATTENTION: TAX EVASION AND TAX AVOIDANCE SCHEMES

  • criminal acts where imported consumer goods are sold without showing the total sales resulting in tax avoidance or lower taxes paid to the budget;
  • value added tax, income tax and other tax avoidance where companies show in their accounts bogus transactions or transactions per unrealistic accounting documents with foreign companies or fake companies registered in Lithuania;
  • off-the-record transactions and sales (disguising the realistic extent of the operations and turnover) in carrying on trade of consumer goods;
  • the so-called VAT carousel based on the Missing Trader Intra-Community (MTIC) whereby perpetrators organise international carousel schemes containing legal entities from numerous foreign states;
  • use of charities, support funds and other non-profit organisations for cashing money and evading tax;
  • income tax avoidance and money cashing through making transfers for fake transactions to foreign bank accounts of foreign companies or off-shores;
  • sale of used vehicles in Lithuania without paying VAT via a chain of companies, forgery of documents and abuse of margin scheme applied to VAT.

2016 OPERATING RESULTS IN FIGURES

317 initiated pre-trial investigations;
396 completed pre-trial investigations (of which 289 investigations were referred to court and closed pursuant to Article 38 “Release from Criminal Liability upon Reconciliation between the Offender and the Victim” and Article 40 “Release from Criminal Liability on Bail” of the Criminal Code) wherein 540 criminal acts have been investigated;
EUR 39 million damage established under the investigations in the amount of over EUR 39 million (EUR 21,7 million in the closed investigations and EUR 17,3 million in the ongoing investigations)
EUR 2,8 million established damage in the amount of EUR 2,8 million compensated on a voluntary basis or pursuant to Article 38 “Release from Criminal Liability upon Reconciliation between the Offender and the Victim” and Article 40 “Release from Criminal Liability on Bail” of the Criminal Code;
EUR 10,2 million temporary restriction of the ownership rights imposed on the total amount of EUR 10,2 million in the completed investigations;
541 suspicious transaction reports received;
EUR 8 million the amount of more than EUR 8 million withheld under Article 14 “Notice of suspicious monetary operations or transactions” of the Law on the Prevention of Money Laundering and Terrorist Financing;
EUR 270 million analysis of the information on the EU-funded projects allocated over EUR 270 million was performed;
EUR 3,7 million contracts in the amount of EUR 3,7 million of the EU support  were terminated on the basis of information submitted by FCIS to the support administrator;
EUR 19 million illegal receiving or illegal attempted receiving of the EU support in the total amount of EUR 19 million;
625 forensic accounting reports drawn up.

 2016 DISCLOSURES

  • A group of Lithuanian and Latvian nationals engaged in illegal trade in oil products.

The delivery of illegal fuel by the group of Lithuanian and Latvian nationals to the Central and South-Eastern Lithuania, allegedly, resulted in the evasion of VAT in the total amount of EUR 8 million.

  • Two organised groups engaged in illegal trade in petrol and diesel in Vilnius and Mažeikiai.

The investigation identified that nearly EUR 12 million of VAT was not paid to the national budget per one year of criminal activity owing to the applied complex VAT fraud scheme.

  • A group of persons including one Lithuanian national engaged in crypto currency trade.

FCIS in cooperation with the Fiscal Intelligence and Investigation Division (FIOD) of the Netherlands and other foreign law enforcement agencies identified the persons who allegedly used bitcoins to launder nearly EUR 20 million.

  • A company selling plastic doors and window frames in Klaipėda.

In the course of a few years, the company allegedly sold its production for a total of EUR 4 million, although, evaded tax of a total amount of EUR 1 million. The sales of the Polish-produced doors and window frames were not accounted. It is estimated that the total number of plastic window frames imported on behalf of bogus companies could be sufficient to equip almost 570 private properties.

  • Catering companies engaged in illegal profiting from schoolchildren and patients.

FCIS has ongoing investigation concerning the alleged fraud, misappropriation of property on a large scale and fraudulent management of accounts by a group of catering companies that supplied schools and hospitals from 2014 to 2016.

  • JSC Lithuanian Railways (AB „Lietuvos geležinkeliai”) and related enterprises.

The investigation identified that transactions of these enterprises could have been non-transparent. The investigation was instituted on the basis of the received report on the allegedly illegal activities of two companies registered in Lithuania. They have been engaged in international money laundering schemes using bank accounts of the offshore companies registered in Belize and the UK which were opened in a Latvian bank.

For more information on the FCIS investigations, please refer to http://www.fntt.lt

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