International Money Laundering Network Run by Russian Millionaires Dismantled in Major Sting
A sophisticated money laundering network, allegedly orchestrated by two Russian millionaires, has been dismantled in an international operation. The system, which facilitated billions of pounds in criminal transactions, was used by UK drug gangs, cybercriminals, and even the Russian state to launder illicit funds.
Key Players and Operations
The network was composed of two interconnected operations, known as Smart and TGR. Smart was led by Ekaterina Zhdanova, a Russian national with a background in finance, while TGR was headed by Georgy Rossi, a former Russian banker now believed to be in Europe. Both leaders reportedly charged a three percent fee to launder billions of pounds, routing funds through over 30 countries, including the United Arab Emirates.
The network’s clientele included Russian-speaking hackers laundering cryptocurrency, British street gangs converting cash, and even sanctioned Russian elites buying UK properties. Irish crime cartel the Kinahans allegedly used the system to exchange cash for cryptocurrency, while it is claimed the Russian state utilized it to fund spies abroad and transfer money from its state-controlled TV network, RT, to journalists in the UK.
Major Law Enforcement Efforts
The National Crime Agency (NCA) spearheaded "Operation Destabilise," which they describe as the largest money laundering investigation in the past decade. To date, 84 arrests have been made, with £20 million seized in the UK alone. However, the NCA estimates the network would have needed to launder £700 million to recover its losses.
Rob Jones, NCA Director General of Operations, stated:
"Operation Destabilise has exposed billion-dollar money laundering networks operating in ways previously unknown to international law enforcement. We have disrupted this criminal service at every level, removing the air of legitimacy that allowed them to infiltrate the economy."
Uncovering the Network
The network was initially discovered in November 2021 when London-based courier Fawad Saiedi was arrested with over £250,000 in cash. Saiedi, believed to have laundered £15 million under Zhdanova’s instructions, was jailed for his role.
Further investigations exposed UK-based cash couriers, including Semen Kuksov and Andrii Dzektsa, who laundered £12.3 million in just 74 days. Other arrests included couriers smuggling cash across borders, such as Ukrainian nationals caught with £1 million hidden in washing powder boxes at the Channel Tunnel and Latvian national Andrejs Jasins, found with £400,000 under a van seat on the M5.
International efforts played a crucial role, with agencies in the US, Ireland, Jersey, and France coordinating to dismantle the operation.
Sanctions and Legal Action
In response to the investigation, US authorities imposed sanctions on several individuals linked to the network, including Zhdanova, Rossi, and their associates. Businesses tied to TGR, such as TGR Partners and TGR Corporate Concierge Ltd., were also sanctioned.
Impact on UK Crime
The network’s operations had significant ties to UK criminal activity, with drug dealers using laundered cryptocurrency to purchase narcotics from South American cartels. The system was also linked to Russian ransomware groups targeting UK entities, including hospitals, schools, and businesses, demanding millions in cryptocurrency.
Nik Adams, the National Police Chiefs’ Council lead for economic crime, highlighted the network’s hidden dangers:
"This system was operating from within our communities, moving vast sums of money linked to the drugs trade and serious violence on our streets."
A Global Crackdown on Illicit Finance
The collapse of this network represents a landmark achievement in the fight against transnational money laundering. With billions at stake and links to various forms of organized crime, the operation underscores the importance of international collaboration in addressing complex financial crimes.
Further arrests and sanctions are expected as investigations continue.