According to the Wall Street Journal, French prosecutors are investigating a potential money laundering transaction between French billionaire Bernard Arnault, chairman of the LVMH Group, and a Russian businessman.
The Paris prosecutor's office stated on Friday that their investigation commenced following an alert from the French anti-money laundering unit, Tracfin, and has been ongoing since 2022. The prosecutor's office declined to provide further comments.
As per the Bloomberg Billionaires Index, Arnault, CEO and majority shareholder of the luxury empire LVMH Group, is the world's second-richest individual, trailing only Elon Musk. Representatives from LVMH have not yet responded to requests for comment.
Prior to the prosecutor's statement, the French newspaper Le Monde reported that the French anti-money laundering agency detected suspicious fund transfers between Arnault and Russian businessman Nikolai Sarkisov. These transactions are linked to Arnault's 2018 real estate acquisition in Courchevel, located in the French Alps. The report, citing a Tracfin document, mentioned that the deal allowed Sarkisov to profit by approximately 2 million euros without any evident justification.
The report further stated that upon the conclusion of the preliminary investigation, French authorities can decide to either launch a formal investigation or drop the case.
Previously, on December 14, 2022, Bernard Arnault officially surpassed Musk to top the Bloomberg Billionaires List with a net worth of $165 billion, marking his first time at the top of the rich list.
The 73-year-old Arnault is at the helm of luxury giant LVMH Group, which boasts 75 brands including Louis Vuitton, DIOR, and Tiffany & Co., with the group valued at $170.8 billion.
Based in Paris, LVMH achieved sales of 64 billion euros last year, making a significant rebound from the lows of the 2020 pandemic. Arnault and his family own approximately 48% of the company's shares.
According to the Beijing Business Daily, LVMH Group's Q1 2023 financial report showed that the group's overall sales increased by 17% year-over-year to 21 billion euros, with organic revenue also growing by 17%. Thanks to domestic consumers and international tourists, the group saw sales growth of 24% in Europe and 34% in Japan. The U.S. market grew by 8%, and other regions in Asia-Pacific also rebounded with the easing of the pandemic, growing by 14% year-over-year.
LVMH Group was formed in 1987 when Arnault merged Louis Vuitton with Moët Hennessy. The company's primary sectors include wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, and selective retailing. It owns over 50 brands, including Louis Vuitton, Bvlgari, Dior, Guerlain, Givenchy, Fendi, and Sephora, among others.
