U.S. and UK Disrupt Global Money Laundering Network Used by Russians

The NCA revealed that the TGR Group operated alongside another network called "Smart," which helped Russians under sanctions access the financial system. Rob Jones, Director General of Operations at the NCA, said, "For the first time, we have been able to map out a link between Russian elites, crypto-rich cyber criminals, and drug gangs on the streets of the UK." He added, "The thread that tied them together – the combined force of Smart and TGR – was invisible until now."

The U.S. Treasury also identified Ekaterina Zhdanova, head of the Smart network, who had been previously sanctioned by the U.S. Office for Foreign Assets Control for helping a Russian client transfer cash into Western Europe via fraudulent investment accounts and real estate purchases. Her location remains unknown.

The Treasury also targeted George Rossi, a Ukrainian national born in Russia, believed to control the TGR Group.

The NCA revealed that the Smart network had funded Russian espionage operations in the past and emphasized that both Smart and TGR networks were heavily reliant on cryptocurrency.

The agency described how criminal groups in Russia, holding cryptocurrency, would connect with drug gangs in other regions with equivalent amounts in cash. The networks would arrange to pay the gangs in virtual currency in exchange for their cash, which would then be laundered through cash-rich businesses, like construction companies. Afterward, the gangs could use the crypto to purchase more drugs or firearms without needing to move physical money across borders.

U.S. Treasury sanctions generally prohibit U.S. persons or entities from conducting transactions with those sanctioned and freeze any U.S.-held assets belonging to the designated individuals or entities.