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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.

THE FCIS FOCUSES ON THE CHEMES OF TAX EVASION AND AVOIDANCE, OFFENCES IN THE SPHERE OF FINTECH

In 2018 organised crime has been hard-hit not once, investigating and transmitting to the court the especially complicated cases, which generated public interest concerning VAT fraud, evasion of corporation tax, illegal turnover of excise goods, money laundering,  possible offences in fintech sphere, fraud in energy sector and non-profit organizations.

Taking into consideration future challenges for investigation of increasingly growing financial machinations, in 2018 the FCIS structure and the arrangement of internal operation were optimised, additionally establishing posts for criminal intelligence and pre-trial investigation investigators and specialists of economy financial operation.

  • Launched pre-trial investigations – 359;
  • Finished pre-trial investigations – 391 (from them transmitted to the court and finished according to  37, 40 of the CC – 271), from which investigated offences – 577;
  • Damage disclosed in the course of investigations – more than 56.3 million EUR (in finished – 29.8 million EUR and in still ongoing – 26.5 million EUR);
  • The damage repaid to the state budget voluntarily and according to the provisions of Art. 38, Art.40 of the CC in the pre-trial investigation cases – 4.9 million EUR;
  • Temporary limitation of ownership rights in cases for the value of 29.8 million EUR;
  • Received reports from the financial institutions on cash flow – 484 thousand;
  • Received reports on suspicious transactions – 1368;
  • According to the Law on Prevention of Money Laundering and Terrorist Financing the amount of more than 26 million EUR was frozen in the accounts at the financial institutions;
  • The information was analysed about the projects financed from the EU support funds, for which the amount of more than 195 million EUR had been assigned;
  • According to the information provided by the FCIS to the support administrator the agreements amounting to 1.9 million EUR have been terminated;
  • The amount of the disclosed illegally received and attempted to receive EU financial support – 8.8 million EUR;
  • The number of the effected economy financial operation analysis and the established specialist’s conclusions is 517.

IN 2018 THE FOLLOWING TENDENCIES PREVAILED     

  • VAT, corporation tax and other tax evasion, whenever companies show in their accounts bogus transactions or transactions according to unrealistic accounting documents with the companies registered abroad, fictitious companies established in Lithuania or other persons;
  • Carousel VAT fraud, using the so-called Missing Traders Intra Community (MTIC). The Perpetrators organise international “carousel” schemes involving legal entities from numerous foreign states;
  • Offences committed on the international level related to excise goods (lubricating oil, diesel fuel);
  • Evasion of corporation tax and withdrawal of money in cash, transferring funds to the accounts at foreign banks of foreign or offshore companies for (fake) transactions, which did not take place;
  • Not showing in the accounting the transactions and all the received proceeds (concealing the real scope and turnover of operation) from trade in consumer goods;
  • Avoidance to pay VAT to the budget of Lithuania using the chain of companies, forgery of documents and abuse of VAT margin scheme.

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

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