Moldovan bank fraud scandal

Funds worth $1 billion were transferred to United Kingdom and Hong Kong shell companies used to conceal the real owners of assets, then deposited into Latvian bank accounts under the names of various foreigners. The total loss from the scheme is equivalent to 12% of Moldova's GDP. A carousel borrowing scheme was applied, loans at one bank were paid off with loans from another. The massive expansion of bank lending was funded with heavy borrowing from Russian companies.

Moldovan bank fraud scandal

Funds worth $1 billion were transferred to United Kingdom and Hong Kong shell companies used to conceal the real owners of assets, then deposited into Latvian bank accounts under the names of various foreigners. The total loss from the scheme is equivalent to 12% of Moldova's GDP. A carousel borrowing scheme was applied, loans at one bank were paid off with loans from another. The massive expansion of bank lending was funded with heavy borrowing from Russian companies.