Rodrigo Rato, the former Managing Director of the International Monetary Fund (IMF) and Spain's former deputy prime minister, has been sentenced to four years and nine months in prison by the Madrid Provincial Court. The 75-year-old was found guilty of serious financial crimes, including tax fraud, money laundering, and corruption.
Rato's conviction stems from his involvement in hiding assets in multiple international bank accounts across various countries, including the Bahamas, Switzerland, Monaco, Luxembourg, and the United Kingdom.
Investigators uncovered over 15 million euros (roughly $15.6 million) in undeclared funds and capital gains. The case has brought to light the former IMF chief’s role in illicit financial dealings, tarnishing his previous high-profile career.
Rato had previously served as Spain's deputy prime minister and minister of the economy under Prime Minister Jose Maria Aznar’s government, representing the People's Party (PP) from 1996 to 2004.
During this time, he held significant influence in shaping Spain's economic policies. His conviction for hiding assets abroad, however, brings into question his integrity and his ability to serve in such powerful roles.
The Spanish court’s decision also reveals that between 2005 and 2015, Rato used his position to defraud Spain’s tax office to the tune of 8.5 million euros (around $9.3 million).
He managed to hide his assets and earnings through a network of foreign accounts, concealing funds that should have been properly declared.
In addition, Rato had exploited a 2012 tax amnesty introduced by Spain’s PP government under Mariano Rajoy.
While this amnesty was intended to help citizens regularise their financial situations, Rato used it as a cover to launder illegally obtained funds, instead of complying with its intended purpose. The court found that he used the amnesty to legitimise his illicit wealth.
Rato’s actions were not limited to this latest financial scandal. In 2017, he was sentenced to four years and six months in prison for misusing a secret corporate credit card to make over 500 undeclared purchases and cash withdrawals while serving as CEO of the failed Bankia savings bank.
This earlier conviction, related to the collapse of the bank, added further shame to his name.
The 74-year-old Rato had served a two-year prison sentence between 2018 and 2020 as part of the Bankia case, and now faces another extended sentence. His latest conviction is a significant blow to his reputation, as his fall from grace is a sharp contrast to the influential position he once held in both Spanish politics and international finance.
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