BY DAVID LISTER AND JAMES BONE

 A HANDFUL of European banks hit out at a report yesterday that they had been linked to
 an investigation into money laundering said to involve up to $10 billion (£6 billion).

 Four of the banks, among the biggest in Europe, denied the allegations or said they
 had no knowledge that they were involved  in any investigation. A fifth, Crédit Suisse
 Group, refused to comment.

 The denials followed a report in yesterday's Wall Street Journal suggesting investigators
 were looking at the role of at least five European banks in helping to move billions
 of dollars from eastern Europe and Russia through the Bank of New York. There is no
 suggestion that any of the named banks has been involved in illegal activity.

 Up to $10 billion is alleged to have been channelled through accounts at the Bank of
 New York, which has been targeted in a US and British money-laundering inquiry. The
 money is believed ultimately to be linked to Semyon Yukovich Mogilevich, a shadowy
 Russian mafia boss.

 Two executives from the Bank of New York  have been suspended on paid leave while
 the investigation continues: Lucy Edwards, who works in the bank's London office, and
 Natasha Gurfinkel Kagalovsky, based in New York.

Despite yesterday's denials, speculation mounted that the investigation could widen
 to include other banks.