The investigations of the Special Prosecutor in Iceland have extended to Luxembourg, where witnesses have been questioned regarding the financial activities of the former Landsbanki.
During the heyday of Iceland’s economy, Landsbanki was not just playing the international market from its home country. In Luxembourg, the bank was issuing real estate loans which later turned out to be dubious at best. The Special Investigative Commission (SIC) report drew special attention to activities in Luxembourg.
RÚV now reports that ten people were formally questioned in Luxembourg yesterday in connection with the old Landsbanki. None of them are Icelandic citizens.
The main focus of the investigations there centre around at least nine suspected cases of market manipulation and fraud. It is alleged that the old Landsbanki sold shares to investors that were worth much less than they were purported to be.
Yesterday’s operation was the result of a request made last summer by the Special Prosecutor, in cooperation with police in Luxembourg, to more thoroughly extend investigations into Landsbanki’s activities in that country.