Proceedings open for 71 accused in Landsbanki money-laundering case

Proceedings in a large money-laundering case linked to a Landsbanki online banking error are due to begin at Reykjavik District Court on Monday, mbl.is reported. A total of 71 people have been charged, and prosecutors aim to bring all of them before the court.

The case stems from a system error during an upgrade by the Banks’ Data Centre, known as RB. It allowed two men to make large transfers without having sufficient funds in their accounts.

Many defendants and lawyers had gathered at the court ahead of the scheduled 10am start. The case is being heard in courtroom 101, with courtroom 102 also open for people to follow the proceedings.

According to the indictment, the two men exploited the error systematically from October 11 to 28, 2025. They made 218 transfers totalling 120.3 million Icelandic krónur. The error temporarily meant withdrawals were not deducted from the accounts’ available balances. Prosecutors say the men obtained illegal gains for themselves and others totalling 95.6 million krónur.

The two men face charges of breach of trust or, alternatively, fraud, as well as money laundering. The indictment says nearly 88 million krónur was subsequently transferred to accounts belonging to 96 people, allegedly to turn the money into cash and conceal its origin.

Several defendants are accused of receiving money, withdrawing it in cash and passing it on, in some cases for a fee. Others are accused of arranging transfers and recruiting people to receive and forward the money. The indictment also describes purchases made with funds believed to have come from the offences, including three Canada Goose jackets and two pairs of socks bought for nearly 663,000 krónur.

The case is among the largest money-laundering prosecutions to reach Icelandic courts in terms of the number of defendants.