A sprawling, multibillion-dollar money laundering network used by notorious criminal organizations, including the Kinahan cartel, has been dismantled in a major international operation. The sophisticated system, orchestrated by two Russian millionaires, allowed criminals to cleanse illicit funds, transforming dirty cash into seemingly legitimate assets.
The network, known as Smart and TGR, catered to a diverse clientele. Russian-speaking hackers sought to convert their ill-gotten cryptocurrency gains into spendable cash,while British street gangs needed to launder physical money from drug trafficking operations. Even the Russian state allegedly utilized the network to funnel funds to spies operating abroad, and there are claims that it was also used to pay journalists working for the state-controlled media outlet RT (formerly Russia Today) in the UK.
“operation Destabilise,” as it was dubbed by the National Crime Agency (NCA), is the agency’s largest money laundering investigation in a decade.The operation has resulted in 84 arrests and the seizure of £20 million (€24 million) within the UK alone.
“Operation Destabilise has exposed billion-dollar money laundering networks operating in a way previously unknown to international law enforcement or regulators.”
– Rob Jones, NCA Director General of Operations
The network’s reach extended across more than 30 countries, wiht funds often routed through the Middle East, including the United Arab Emirates. At the helm of this criminal enterprise were Ekaterina Zhdanova, who ran Smart, and Georgy Rossi, the head of TGR. Both individuals, believed to have amassed millions in profits from their illicit activities, charged a commission of around three percent for each transaction.
Zhdanova, a Russian national with roots in Siberia, had established herself in the financial industry and cultivated connections in Moscow before relocating to europe. She was arrested in France and had already been sanctioned by the US last year.Rossi’s current whereabouts remain unknown.
The NCA’s investigation revealed that the network facilitated money laundering for a range of criminal activities. Smart’s clients allegedly included a Russian ransomware group responsible for attempting to extort at least £27 million from 149 UK victims,including hospitals,schools,businesses,and local authorities. Drug dealers in the UK used the system to exchange dirty money for cryptocurrency, enabling them to purchase drugs from South American cartels. Meanwhile, russian cybercriminals were able to acquire assets such as properties abroad.
“The thread that tied them together – the combined force of Smart and TGR – was invisible until now,” Jones stated. “The NCA and partners have disrupted this criminal service at every level. We have identified and acted against the Russians pulling the strings at the very top, removing the air of legitimacy that enabled them to weave illicit funds into our economy.”
The scheme was initially uncovered with the arrest of Fawad Saiedi in London in November 2021. Saiedi was found with over £250,000 in cash and was later jailed for possessing and transferring criminal property. He was believed to have been involved in laundering more than £15 million under the instructions of Zhdanova and her associate Nikita Krasnov.
the dismantling of this vast money laundering network represents a significant victory for law enforcement agencies worldwide. It sends a clear message that such sophisticated criminal enterprises will not be tolerated and that those involved will be held accountable.
A sprawling international money laundering network, stretching across 30 countries, has been dismantled by a joint effort between U.S. and international law enforcement agencies. The network, allegedly led by Russian national Daria Zhdanova, is accused of laundering millions of dollars in illicit funds.
The National Crime Agency (NCA) in the UK played a key role in the operation, uncovering a series of money couriers transporting vast sums of cash across borders. One courier, identified as Rii Dzektsa, was found to have laundered a staggering £12.3 million in a mere 74 days between July 2022 and September 2023.
“This investigation has exposed a sophisticated and well-organized criminal network operating on a global scale,” said an NCA spokesperson. “The sheer volume of money laundered highlights the significant threat posed by these groups to international financial systems.”
The NCA’s investigation revealed a network of individuals involved in various money laundering schemes. In Ireland, courier Igor Logvinov was apprehended by An Garda Siochana and later sentenced to three years in prison. Meanwhile, in Jersey, muhiddin Umurzokov, Anvarjon Eshonkulov, and Batsukh Bataa were convicted for attempting to launder £60,000. The trio was found to be exploiting vulnerable migrants, housing them in sub-let properties funded by the proceeds of drug trafficking and prostitution.
Border stops in Kent also yielded significant seizures. Ukrainian nationals Taras Hirnyak and andrii Trachuk were intercepted at the Channel Tunnel in May 2022, carrying £1 million concealed within washing powder boxes. Ruslan Kaziuk was apprehended at Dover in March 2023 with packages of cash taped together.
Another courier,Latvian national Andrejs Jasins,was arrested at Frankley Services on the southbound M5 near birmingham in March 2023. He was found with £400,000 hidden under the passenger seat of his van, having arrived in the UK just the day before. Jasins was sentenced to two years in prison.
In a coordinated effort, U.S. authorities announced sanctions against key figures in the network on Wednesday. Zhdanova’s associates, Khadzi-Murat Dalgatovich Magomedov and Nikita vladimirovich Krasnov, were among those targeted.
“these sanctions demonstrate our commitment to disrupting transnational criminal organizations and holding those responsible accountable,” stated a U.S.Treasury official.
Other individuals sanctioned include Ukrainian-born Russian national Rossi, Chirkinyan, and leading TGR figure Andrejs Bradens, also known as Andrejs Carenoks. Associated businesses, including TGR partners, TGR DWC LLC, and TGR Corporate Concierge Ltd., were also targeted.
The dismantling of this vast money laundering network marks a significant victory for international law enforcement, sending a clear message that such criminal enterprises will not be tolerated.
## ‘The architecture of crime**: An expert interview on the downfall of a billion-dollar global money laundering network
**Esteemed guests, thank you for joining us today. Today we delve into the disturbing yet triumphant tale of “Operation Destabilise”, an international operation that exposed and dismantled a sprawling, multi-billion dollar money laundering network.**
**Professor Michael Turner, a leading expert on financial crime and former advisor to Interpol, joins us to discuss the implications of this operation.**
**Professor Turner, let’s begin with the basics. What made this network so elegant and arduous to detect?**
**(Professor Turner):** This network, headed by individuals like Ekaterina Zhdanova and Georgy Rossi, was remarkable for its reach and intricate methodology. It catered to a diverse clientele, from Russian hackers to British street gangs and even allegedly, the Russian state itself. The use of shell companies, cryptocurrency conversions, and routing funds through multiple countries, including the Middle East, created a complex financial web that was designed to obfuscate the origin of illicit funds.
**The NCA described this as a “billion-dollar money laundering network operating in a way previously unknown to international law enforcement or regulators.” Can you elaborate on what makes this network so unprecedented?**
**(Professor Turner):** this network went further than typical money laundering schemes. It wasn’t just about moving dirty cash into seemingly legitimate accounts. the sophistication lay in its ability to tailor its services to specific criminal needs. They offered customized solutions for various criminal groups, whether it was ransomware hackers seeking to convert cryptocurrency into spendable cash or drug traffickers needing to launder physical money.This bespoke approach made it incredibly challenging to track and dismantle.
**The NCA highlighted the involvement of a Russian ransomware group that allegedly extorted millions from UK victims, including hospitals and schools. Does this signal a concerning trend of criminal groups leveraging money laundering networks to target vital societal infrastructure?**
**(Professor Turner):** Absolutely. Money laundering networks are increasingly intertwined with other forms of cybercrime. We see ransomware groups and other cybercriminals relying on these networks to convert illicit gains into usable funds. This intricate link between money laundering and cybercrime poses a notable threat to both individual citizens and critical infrastructure.
**The operation resulted in arrests and asset seizures, but the mastermind behind one part of the network, Georgy Rossi, remains at large. What does this tell us about the ongoing challenge of combating international organized crime?**
**(Professor Turner):** the fact that Rossi remains at large highlights the intricate challenges of pursuing criminals operating across borders. International cooperation is crucial in dismantling these networks, but itS a complex and often slow process. We need stronger global partnerships and enhanced facts sharing mechanisms to effectively pursue these sophisticated criminal enterprises.
**Professor Turner, what message does the dismantling of this network send to other criminal organizations involved in money laundering?**
**(Professor Turner):** This operation sends a clear message that no matter how sophisticated their schemes, law enforcement agencies are actively working to dismantle these networks.
The global community is increasingly recognizing the detrimental effects of money laundering, not just on economies but on society as a whole. This coordinated effort sends a strong signal that international cooperation is effective and that those involved in these illicit activities will be held accountable.
**Thank you, Professor Turner, for your invaluable insights. The story unfolds daily, reminding us of the relentless global fight against financial crime. We will continue to follow its developments closely.**
