Unveiling the Investigation: Diving into Europe’s Wealthiest Man Bernard Arnault’s Money-Laundering Probe

Bernard Arnault, the world’s second richest man, is facing allegations of money laundering.

The Paris public prosecutor’s office is investigating financial transactions involving Arnault, the CEO of luxury goods giant LVMH, and Russian billionaire Nikolai Sarkisov. Sarkisov, whose brother Sergey founded one of Russia’s largest insurance companies, Reso-Garantia, is said to have purchased multiple properties in Courchevel, an exclusive ski resort in the French Alps.

Reports suggest that Arnault’s company provided a loan worth around £16 million for Sarkisov’s property acquisition. The complex deal involved companies based in France, Luxembourg, and Cyprus, and allegedly allowed Sarkisov to make a profit of approximately £1 million.

Arnault, the founder and CEO of Louis Vuitton and Moet Hennessy owner LVMH, is known as “the wolf in cashmere” for his wealth and influence. With an estimated net worth of £134 billion, he and his family own 41% of LVMH, which includes luxury brands like Tiffany’s and Tag Heuer.

However, an official from the French finance ministry’s financial intelligence unit, Tracfin, has raised concerns about the deal, suggesting it may have been an attempt to conceal the origin of the funds used for the property.

The Paris public prosecutor’s office launched a preliminary investigation last year, confirming that transactions involving Arnault and Sarkisov are part of the probe.

Courchevel holds a special connection for Arnault, who learned to ski there as a child. Sarkisov’s wife, Ilona Kotelyukh, has also expressed her love for Courchevel, calling it “my oasis.”

A spokesperson for Reso-Garantia defended the transaction, stating that it was a standard real estate deal carried out through French companies, notaries, and lawyers.

LVMH did not respond to requests for comment, but a close associate of Arnault claimed that the deal was in compliance with French law.

This investigation is a significant setback for Arnault, who previously lost a court case against French tax investigators in February regarding a tax fraud probe related to LVMH’s activities in Belgium.