The District Prosecutor (Héraðssaksóknari) has filed charges against 70 people, alleging they committed agency fraud and laundered money by taking advantage of a system error in the online banking of Landsbankinn, Iceland’s largest bank. The case was first reported by RÚV on Wednesday.
According to the District Prosecutor, two men are considered the ringleaders of the scheme targeting Landsbankinn. RÚV reported that four people are accused of recruiting 64 others to help launder money obtained through the illegal activity.
The prosecutor said the fraudulently withdrawn funds were spent on expensive goods. No details were released about the types or value of the goods purchased.
Background
Landsbankinn is an Icelandic bank with its headquarters in Reykjavík. The government established Landsbankinn in 2008 from the domestic operations of its predecessor, Landsbanki. It was the largest bank in Iceland, and as of 2022, the Icelandic State Treasury owned 98.2% of its shares.
Sources
- RÚV (first reported) in Icelandic
