Law enforcement authorities disrupt two Russian money laundering operations

An international coalition of law enforcement agencies, led by the United Kingdom’s National Crime Agency (NCA), has exposed and disrupted two Russian-speaking money laundering networks with links to drugs, ransomware and espionage.

Under the codename ‘Operation Destabilise’, the law enforcement authorities from France, Ireland, the United Kingdom and the United States were able to arrest a total of 84 Russian-speaking suspects linked to two criminal organizations: Smart and TGR. In addition, over £20 million was seized in cash and cryptocurrency.

The organizations used their global connections to launder money for international crime groups such as the Kinahans, a crime syndicate who’s being held responsible for trafficking drugs and firearms into the United Kingdom. Smart and TGR also helped Russian clients to illegally bypass sanctions or financial restrictions to invest money in the UK.

According to the NCA, the criminal networks also supported Russian cybercriminals to launder their illicit profits. One of the networks is allegedly responsible for extorting at least £27 million from 149 victims in the UK, including hospitals, schools, businesses and local authorities. The true impact however is likely to be much higher.

“Operation Destabilise has exposed billion-dollar money laundering networks operating in a way previously unknown to international law enforcement or regulators,” says Rob Jones, Director General of Operations at the NCA, in a statement.

“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. We also took out the key coordinators that enabled the cash-based element of their operation in the UK, making it extremely difficult for them to operate here and sending a clear message that this is not a safe haven for money laundering,” he adds.

Nik Adams, Assistant Commissioner of the City of London Police and NPCC lead for economic crime, emphasizes the damage the Russian-speaking criminal networks caused for local communities in the UK.

“Money laundering causes untold harm to the British public, it deprives society of legitimate funds that pay for schools, hospitals and social services. Under Destabilise, the NCA, alongside policing and other partners, has led UK law enforcement efforts to make our streets safer.”

The NCA collaborated with multiple international partners during ‘Operation Destabilise’, including the US Department of the Treasury's Office of Foreign Assets Control (OFAC), the FBI, the Drug Enforcement Agency (DEA), the French Direction Centrale de la Police Judiciaire, and Ireland's national police and security service, An Garda Síochána (AGS).