Formal Investigation Into Parmalat Launched In Luxembourg

by Ulrika Lomas, for LawAndTax-News.com, Brussels

12 January 2004

It emerged last week that the authorities in Luxembourg have launched an inquiry with regard to alleged money laundering activities linked to the recent collapse of Italian food giant, Parmalat.

Speaking to the international media, deputy public prosecutor, Jean-Francois Boulot explained that the investigation was initiated in order to "clarify the structure and assets of Parmalat and its directors in the Grand Duchy of Luxembourg".

Meanwhile, speaking to the AFX news agency, Carlos Zeyen, prosecutor in charge of Luxembourg's Financial Intelligence Unit, explained that following the Italian dairy firm's collapse late last year, several banks and financial institutions in the jurisdiction had expressed concerns over accounts held by the company or its upper management.

This prompted a probe, during which investigators discovered that there were other banks which had been less forthcoming about their Parmalat connections.

As a result of this, Mr Zeyen revealed: "We decided the affair was big enough to start a formal investigation in Luxembourg."

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