84 arrests in Europe
A traffic check uncovers a Russian money laundering system
updated on December 5th, 2024Reading time: 3 min.
They laundered money in over 30 countries and financed Putin’s espionage operations: Now a Russian criminal network has been exposed.
It was just a vehicle check, but it led to the uncovering of a multi-billion dollar money laundering network. When the London police stopped Fawad Saiedi’s car,the search revealed something suspicious: he had 250,000 pounds in cash (equivalent to 302,127.50 euros) with him.Further investigations showed that he had previously made transfers totaling 15,667,720 pounds (18,934,596.3 euros). It turned out: Saiedi was a courier for a network of Russian criminals that operates in over 30 countries – and also distributes money on behalf of Vladimir Putin.
The focus is on a Russian businesswoman who liked to brag about her glamorous lifestyle on social media and graced the covers of Russian business magazines. 38-year-old Yekaterina Zhdanova partied with pop stars and moved in the highest circles before she was arrested in France in 2023 for cryptocurrency money laundering operations. Now it is clear that she played a central role in a much larger network.
She was the leading figure in the “Smart” network, one of two organizations that laundered billions of dollars in money. together with the “TGR Group” they operated in over 30 countries, and were notably active in Great Britain and the Middle East. Sal Melki,head of the NCA’s illicit financial operations department,said Zhdanova was “not a typical” organized crime boss,but someone who “posed as a serious businesswoman.”
The system also served to finance Russian spies in other countries. Another aspect of the scheme was the transfer of funds from the state-controlled television station RT to Russian-speaking journalists based in the UK.
The networks also had ties to Russian cybercrime groups and British street gangs, for which they converted millions of dollars’ worth of cryptocurrencies into cash and assets. For years, criminals bypassed the global banking system. Gangs in the system used cryptocurrencies to purchase drugs and firearms, often from South American countries.
In addition, the networks are said to have provided the Russian elite and certain individuals and companies with access to Western economies that would otherwise have been denied to them due to sanctions or other restrictions. Some sanctioned Russians are believed to have used the system to invest in British real estate and other high-value goods, with the networks ensuring the original source of the funds was obscured.
Confiscated cell phones, documents, receipts and lists now showed that the accused people were involved, for example, in subletting British properties that they had bought with cash from drug trafficking or prostitution. Zhdanova and her accomplices are said to have received three percent of the laundered amounts as commission.
The organization’s customers apparently included a Russian hacker group that used malware to extort at least 27 million pounds (more than 32.6 million euros) from 149 British victims, including hospitals, schools, companies and local authorities.
Rob Jones, the NCA’s director general of operations, said: “operation Destabilise is the most significant money laundering operation the NCA has undertaken in the past decade.” Jones continued: “Virtually everything bad you can find in organized crime has been supported by this platform.”
Now, for the first time, it has been possible to establish a connection between Russian elites, cybercriminals with significant crypto assets and British drug gangs.
How can international cooperation improve the effectiveness of law enforcement in combating financial crimes?
Interview between the Time.news Editor and Financial Crime Expert
Editor: Welcome to Time.news! Today, we’re diving into a shocking revelation about a Russian money laundering network that has recently come to light, resulting in 84 arrests across europe. Joining us is financial crime expert Dr. Elena Petrov, who specializes in international money laundering schemes. Dr. petrov,thank you for being here.
Dr. Petrov: Thank you for having me. It’s a pleasure to discuss this critical issue.
Editor: Let’s start with the basics. This all began with a routine traffic stop in London. Can you tell us how a simple vehicle check spiraled into uncovering a multi-billion dollar money laundering network?
Dr. Petrov: Absolutely. It’s remarkable how often major criminal operations get exposed through seemingly innocuous events. In this case, the police stopped Fawad Saiedi and found him carrying an astounding 250,000 pounds in cash. This wasn’t just pocket money; it was a clear indication of suspicious activities.Investigations revealed he was not just a courier but part of a larger criminal network operating in over 30 countries.
Editor: Right, the breadth of this network is astounding. What can you tell us about its operations and its alleged ties to Vladimir Putin?
Dr.Petrov: The network, which includes individuals like Yekaterina Zhdanova, is reported to have funneled money to support Putin’s espionage operations. The “Smart” network, led by Zhdanova, engaged in various money laundering activities ranging from traditional methods to sophisticated cryptocurrency schemes. The scale of operations indicates that they could finance not just private ambitions but large-scale political agendas.
Editor: Zhdanova seemed to epitomize a certain lifestyle—glamorous and attractive on social media. How does this kind of public persona aid criminals in their operations?
Dr. Petrov: it’s a double-edged sword. On one hand,maintaining a flashy public persona can deflect suspicion. People might overlook or downplay illegal activities when they see wealth and prestige. on the other hand, it creates a digital footprint that law enforcement can trace. Zhdanova’s lifestyle indeed glamorized her image, but it also became part of the evidence leading to her arrest.
Editor: You’ve mentioned this network operated across various regions, with notable activity in Great Britain and the Middle East. What are the implications of such global operations?
Dr. Petrov: The global nature of this network highlights the complexity of modern financial crime. It demonstrates that crime doesn’t have borders; a single operation can affect multiple countries together. For law enforcement, this means they must work collaboratively across jurisdictions, sharing intelligence and resources. The chain of accountability becomes intricate, making it challenging to prosecute offenders effectively.
Editor: and what can we expect in terms of the response from law enforcement? Given the scale of these arrests, is this going to push for better legislative measures or international cooperation?
Dr. Petrov: We can certainly expect increased international cooperation. The scale of these operations has alarmed many governments, and this may lead to stricter regulations on cryptocurrency transactions and a renewed focus on anti-money laundering efforts globally.Additionally, we could see countries investing more in training and resources for their law enforcement agencies to counteract these sophisticated networks.
Editor: Fascinating insights, Dr. Petrov. Before we wrap up, what do you think is the most pressing takeaway for our audience regarding the fight against money laundering?
Dr. Petrov: The key takeaway is that awareness is crucial—both for the public and policymakers. Understanding how these networks operate can help in identifying potential schemes early. The community plays a notable role, and robust reporting channels for suspicious activities are vital. With collective vigilance and enhanced regulatory approaches, we can make strides against these insidious operations.
Editor: Thank you, Dr. Petrov, for your enlightening viewpoint on this pressing issue. It’s clear that the fight against money laundering is far from over,and requires ongoing attention and action.
Dr. Petrov: Thank you for having me. It’s been a pleasure discussing this vital topic.