LVMH is under investigation for money laundering

Bernard Arnault, CEO of the multinational LVMH and currently the second richest person on the planet, has not spent his recent hours in total tranquility. His luxury conglomerate is under investigation by the French judiciary for money laundering in what appears to be a two-party operation. The other individual involved in this case is Nikolai Sarkisov, a Russian oligarch belonging to one of Russia's wealthiest families and co-founder, along with his brother Sergey, of RESO-Garantia, one of the world's most significant insurance companies.

The scandal, first reported by Le Monde, sheds light on the purchase of flats located inside an old building in the luxury ski resort of Courchevel. The newspaper has reported that Tracfin, a financial intelligence unit tasked with combating money laundering, has stated that Nikolai Sarkisov acquired real estate in the alpine resort through a transaction in which Arnault, through one of his companies, provided a loan.

As also reported by The Business of Fashion, an unidentified Tracfin official further informed Le Monde that the transactions involving Arnault and Sarkisov, who seemed to have acted through a complex network of legal entities, may have been aimed at concealing the origins of the funds used. Arnault's lawyer, Jacqueline Laffont, promptly responded to the accusations, calling them absurd and unfounded, and adding, «The operation carried out to enable the expansion of the Cheval Blanc hotel in Courchevel is well-known and was conducted in compliance with the law and with the support of consultants.» Only the developments in this preliminary investigation will tell us whether this incident will tarnish Arnault's image or not.