Europol starts investigation into Kaupthing Bank

Europol, the pan-European police network, has started an investigation into failed Icelandic bank, Kaupthing and financial crimes police in the UK are also still working on their own investigation into the bank.

As reported on IceNews yesterday, former Kaupthing director, Hreidar Mar Sigurdsson sent a letter to Icelandic authorities harshly criticising the country’s FME financial regulator. The FME has since responded to the allegations, saying that the regulator does not pass evidence on to the Special Prosecutor without being absolutely certain of its validity. It then falls to the prosecutor to interrogate suspects – meaning that the FME was right to have not called Sigurdsson in for questioning.

Special Prosecutor, Olafur Thor Hauksson told Visir.is that he is happy with his team’s working relationship with the FME; but would not comment further on Sigurdsson’s letter.

Sigurdsson stressed in his letter that the British regulator, the FSA, has cleared him and his colleagues of any wrongdoing. However, that does not mean that the British police have done the same – and Visir.is sources now claim that Europol has started its own investigation into Kaupthing as well.

Kaupthing used to be active in international markets and generated large amounts of capital by issuing bonds in Luxembourg. The Europol investigation will look into whether financial information provided by the bank to potential bondholders was entirely accurate – or indeed, if it was deliberately misleading. To deliberately give false information in such cases is against international law. The investigation is expected to touch on many different European countries before its conclusion.

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