Anti-money-laundering campaigner Bill Browder has submitted a criminal complaint to the Vienna Public Prosecutor’s Office, targeting two European financial institutions. The complaint, filed on August 22, 2019, accuses Raiffeisen Bank International of Austria and Danske Bank of Denmark of processing hundreds of millions of dollars in illicit funds originating from former Soviet states.
The legal action centers on allegations that Raiffeisen’s Estonian branch and Danske Bank funneled dirty money through shell companies registered in jurisdictions including Belize, the Seychelles, the British Virgin Islands, and Panama. Browder’s evidence claims that approximately $967 million flowed from Danske Bank to Raiffeisen and other Austrian banks, with the money traced to Russian criminal syndicates. “Several of the companies that send the illegal money are just dummy corporations or do not have enough capital,” Browder stated.
He noted that individuals receiving these funds typically lack permanent business addresses in the registration countries and often purchase high-value real estate in European cities. The complaint alleges that Raiffeisen officials failed to report suspicious transactions to regulators.
This follows a March 2019 drop in Raiffeisen’s share price of 12 percent after initial reports of questionable financial flows. The scandal has already cost multiple lenders billions in stock value, according to the complaint. Browder, CEO of Hermitage Capital Management, has a long history of campaigning against Russian corruption.
His work previously led to the Magnitsky Act in the United States, which targets human rights abusers and corrupt officials. The activist has faced opposition from Russian authorities but continues to file legal actions.
The complaint connects Danske Bank’s Estonian branch, already at the center of a major money-laundering scandal, directly to Raiffeisen. Estimates suggest up to $230 billion in suspicious transactions passed through Danske’s Estonian operations between 2007 and 2015. Browder’s evidence claims Raiffeisen processed funds from those operations.
The shell companies used in the alleged scheme are registered in jurisdictions known for minimal oversight. Browder’s complaint argues that these entities are not legitimate businesses but rather vehicles to obscure the origin of funds.
The pattern described involves money moving through one bank, then another, before being invested in real estate assets. The Vienna Public Prosecutor’s Office now holds Browder’s evidence. The outcome of the investigation remains uncertain. Browder has requested that Austrian authorities examine the flow of $967 million and explain why regulators did not identify the transactions earlier.
European regulators are closely watching the case. The European Central Bank has intensified efforts to combat money laundering in the banking sector.
Raiffeisen and Danske now face potential formal criminal investigations. The complaint represents another chapter in Browder’s ongoing efforts to hold financial institutions accountable for processing illicit funds from Russian sources.
