Benidorm court expands money laundering case involving Russian business network

Twenty-one individuals are facing investigation as a Benidorm court expands proceedings into an alleged money laundering network linked to Russian organised crime on the Costa Blanca and in the Balearic Islands. The magistrate of Court Number 1 of the Benidorm Court of First Instance issued the ruling following a Supreme Court decision that upheld an appeal by the Special Prosecutor’s Office against Corruption and organised crime. This overturned a previous dismissal of the case against 18 individuals after the Alicante Court annulled earlier summons due to a judicial error regarding the legal investigation period.

The investigation, which originated in 2015 from the Money Laundering Unit of the Alicante Police, focuses on capital movements channelled through shell companies, hawala transactions, international transfers, and real estate investments. According to the indictment, funds originating from Russia were used to acquire luxury real estate developments, restaurants, land, and leisure establishments in Alicante, Ibiza, and Formentera. Specific transactions under scrutiny include a property purchase in Altea Hills for 660,000 euro, financing for the Celeste residential project in Altea through contributions from Russia, Cyprus, and Latvia, and operations related to restaurants and nightclubs in Ibiza.

The court order also highlights alleged connections between the network and public officials, including a National Police inspector and a Guardia Civil officer, as well as contacts within the Altea Town Hall. Investigators believe a Russian lawyer based in Altea acted as an intermediary to expedite residency applications, withdraw administrative sanctions, and facilitate procedures using gifts or financial compensation. Additionally, the case involves operations utilising cryptocurrencies to conceal the origin of funds. The prosecution and other plaintiffs now have ten days to request the opening of the trial, file for dismissal, or propose further investigative measures.