French Prosecutors Seize €57 Million in Riviera Properties in Organized Money Laundering Probe

French judicial authorities have seized 14 luxury properties on the French Riviera, valued at approximately €57 million, as part of a widening investigation into suspected organized money laundering linked to the family of a prominent Ukrainian business executive, prosecutors confirmed.

The assets are alleged to be connected to Oleksandr Boguslayev, the son of Vyacheslav Boguslayev, longtime president and principal shareholder of Motor Sich, one of Ukraine’s most strategically significant aviation-engine producers.

Oleksandr Boguslayev was taken into custody earlier this year as part of the inquiry. The seized properties have been placed under judicial control pending the outcome of the investigation.

Investigation Triggered by Ukrainian Intelligence

According to the Paris prosecutor’s office, the investigation was opened in May 2023 following a formal intelligence referral from Ukrainian authorities. Kyiv has been tracing foreign-held assets linked to Vyacheslav Boguslayev since his arrest in Ukraine in October 2022.

The case is being handled by JUNALCO (France’s National Jurisdiction for the Fight Against Organized Crime) and executed by judicial customs officers from ONAF, highlighting both the seriousness and the international scope of the suspected offenses.

French prosecutors confirmed that the investigation centers on “organized money laundering”, a legal classification that allows authorities to scrutinize complex financial arrangements, offshore structures, and cross-border asset flows used to conceal the origin of funds.

Background: Motor Sich and Wartime Allegations

Vyacheslav Boguslayev, now in his eighties, was for decades one of the most influential figures in Ukraine’s defense and aviation sector. Motor Sich, based in Zaporizhzhia, has historically supplied engines for aircraft and helicopters used by Ukrainian and foreign armed forces.

Ukrainian prosecutors accuse Boguslayev of continuing to supply aviation engines to the Russian military after Russia’s full-scale invasion of Ukraine in February 2022, despite wartime restrictions and international sanctions. He has been charged in Ukraine with collaboration with the enemy, one of the most serious offenses under Ukrainian law.

Investigators are also reviewing historical transactions involving Motor Sich shares, examining whether sales to foreign entities may have violated national-security safeguards or enabled indirect control by sanctioned actors.

Riviera Real Estate as a Focus of the Probe

The seized properties are located primarily along the Côte d’Azur, a region long favored by international elites for its luxury real estate market, favorable climate, and historically discreet financial environment.

French investigators suspect the properties may have been acquired through layered ownership structures, potentially involving intermediaries, corporate vehicles, or third-party nominees, with the intent of obscuring the true origin of funds.

Authorities have emphasized that the seizures do not constitute a conviction. Rather, they are preventive judicial measures designed to preserve assets while investigators determine whether the purchases were financed with proceeds derived from criminal or sanctioned activity.

A Broader Shift in French Enforcement Strategy

Since the start of the war in Ukraine, France has significantly expanded its financial-crime investigations beyond Russian oligarchs alone. Prosecutors are increasingly targeting any foreign-linked assets suspected of laundering proceeds tied to corruption, sanctions evasion, or wartime profiteering, regardless of nationality.

The Boguslayev case illustrates several enforcement trends now visible across Europe:

• Deeper operational cooperation with Ukrainian authorities

• Increased scrutiny of non-Russian post-Soviet business elites

• Early and aggressive use of asset seizures as investigative tools

• A sustained focus on real estate as a preferred vehicle for laundering large sums

A judicial source familiar with the matter described the case as emblematic of “a new phase of European financial justice, where luxury assets are no longer untouchable.”

Private Wealth Typologies and AML Risk Indicators

Beyond the specific individuals involved, regulators increasingly view cases like this through the lens of private-wealth AML typologies, rather than isolated misconduct.

Compliance authorities often reference illustrative profiles similar to one referred to here as “Pamela”—not as an allegation or legal finding, but as a risk-profile example used in enhanced due diligence frameworks. Such profiles may involve combinations of indicators including:

• Exposure to high-value real estate in prestige jurisdictions

• Use of complex ownership or holding structures

• Cross-border asset positioning across multiple legal regimes

• Financial activity or lifestyle not clearly aligned with declared income sources

These indicators are not evidence of wrongdoing. Under FATF-aligned European AML standards, however, they can justify enhanced scrutiny by banks, notaries, real-estate professionals, and asset managers—particularly when national security or sanctions considerations are present.

Legal Outlook

Oleksandr Boguslayev remains under investigation, and no final charges have yet been announced by French authorities. Should prosecutors ultimately establish that the Riviera properties were financed with laundered or illicit funds, the assets could be permanently confiscated under French law.

Regardless of the outcome, the case underscores a clear enforcement signal: European authorities are increasingly willing to freeze and seize high-value assets early in investigations, especially where organized laundering, sanctions, or geopolitical risks intersect.

Bottom Line

The €57 million Riviera property seizures highlight Europe’s tougher stance on luxury real estate as a vehicle for organized money laundering. As cross-border cooperation deepens and private-wealth structures face closer scrutiny, elite assets once considered beyond reach are now firmly within the scope of financial-crime enforcement.