Prosecutors investigate more cases tied to RB system flaw

Iceland’s district prosecutor is investigating additional cases linked to a system flaw at Reiknistofa bankanna, the banks’ data processing centre, beyond the alleged fraud at Landsbankinn for which charges have been filed, mbl.is reports.

The charges in the Landsbankinn case cover fraud of 120 million and an alleged unlawful gain of 95 million. When the case came to light last year, reports said 390 million had been taken from Landsbankinn and 10 million from Arion Bank. In January, the district prosecutor said between 200 million and 300 million had been recovered.

Prosecutor Þorbjörg Sveinsdóttir said more cases connected to the system flaw remain under investigation. Her response did not state how many cases there are or their scale.

As reported earlier on Tuesday, 70 people have been charged in the case. The charges involve two main defendants, who are alleged to have taken the money from the bank, and four alleged money-laundering accomplices who passed tasks on to 64 others. Those 64 are accused of receiving transfers and withdrawing the money in cash.

The case is due to be formally presented in Reykjavik District Court next Monday. The hearing is expected to last six hours in courtroom 101, the court’s largest. The room can comfortably hold only 30 to 35 people, including defence lawyers, in addition to the judge, a court employee and the prosecutor.

Arraignments usually take five to 15 minutes, making the planned hearing an unusual procedure.