Operation Destabilise: British-Led Crackdown on Russian Money Laundering Networks Unveiled

A British-led operation, codenamed Operation Destabilise, has dismantled Russian money laundering networks linked to organized crime across the globe, including the UK, Middle East, and South America. Spearheaded by Britain’s National Crime Agency (NCA), the initiative involved collaboration with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), the Drug Enforcement Agency (DEA), and the FBI, targeting the criminal enterprises Smart and TGR.

Investigators identified the two Russian-speaking networks as central to a vast money laundering operation. Smart, led by Ekaterina Zhdanova, worked alongside Khadzi-Murat Magomedov and Nikita Krasnov to facilitate the movement of illicit funds. Zhdanova, already sanctioned by U.S. authorities in November 2023 for transferring money for Russia’s elite, played a pivotal role in the scheme.

TGR, the second network, was headed by George Rossi, supported by his deputy Elena Chirkinyan and Andrejs Bradens, also known as Andrejs Carenoks. OFAC has now sanctioned all six individuals linked to these operations.

The operation was unveiled as OFAC announced further sanctions targeting the networks’ leaders and four businesses connected to TGR. A seventh individual, described as a global money laundering facilitator with ties to the networks, was arrested by the NCA’s international partners.

The networks operated out of Moscow, laundering money for criminal gangs in exchange for untraceable cryptocurrency. The NCA revealed that the networks provided financial services for Kremlin-aligned espionage operations and worked with transnational crime groups, including the Kinahan Cartel. Based in Dubai, the Kinahan Cartel is notorious for trafficking drugs and firearms globally and has been linked to regimes in Iran, Venezuela, Russia, and Hezbollah.

NCA Director General of Operations Rob Jones stated, “Operation Destabilise has exposed billion-dollar money laundering networks operating in a way previously unknown to international law enforcement or regulators. For the first time, we have been able to map out a link between Russian elites, crypto-rich cyber criminals, and drugs gangs on the streets of the UK.”

Jones emphasized the scope of the operation, adding, “The thread that tied them together – the combined force of Smart and TGR – was invisible until now. 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.”

From late 2022 to mid-2023, the Smart network funded Russian espionage operations. Both Smart and TGR helped Russian elites bypass financial restrictions to invest in Western markets, posing a significant threat to economic integrity.

The networks used a sophisticated scheme to launder funds, collecting money in one country and making an equivalent value available elsewhere, often by exchanging cash for cryptocurrency. This streamlined system allowed criminal groups to reinvest in drugs and firearms without physically moving money across borders.

The NCA disclosed that the networks operated across 30 countries, with coordinated UK activity resulting in 84 arrests, including 71 within the UK. Law enforcement agencies seized over £20 million in cash and cryptocurrency.

One significant courier network investigated conducted cash exchanges in 55 locations across England, Scotland, Wales, and the Channel Islands over four months, laundering money for at least 22 criminal groups. A London-based courier linked to Zhdanova and Krasnov facilitated over £15 million in cash laundering and was sentenced to four years and four months in prison.

Another courier network led by Semen Kuksov and Andrii Dzektsa laundered over £12 million in the UK within two and a half months. Kuksov was also connected to high-turnover cryptocurrency wallets. Both he and Dzektsa received sentences exceeding five years, while a courier, Igor Logvinov, was sentenced to three years in Ireland.

Operation Destabilise uncovered the networks’ low-profit margins, often charging just 3% commission for laundering services. The £20 million seized by the NCA would require laundering £700 million in funds to recover losses.

The networks also laundered proceeds from ransomware attacks. In 2021, Zhdanova laundered over $2.3 million in suspected ransomware payments for the Ryuk group, which extorted at least £27 million from UK victims, including hospitals and schools.

Smart and TGR also had ties to Garantex, a cryptocurrency exchange sanctioned by the UK and US in 2022 for facilitating transactions linked to weapons used in Russia’s invasion of Ukraine.

Dan Jarvis, Britain’s Security Minister, highlighted the operation’s impact: “Illicit finance inflicts immense harm around the world, and this major global operation marks a significant step against economic crime. Led by the National Crime Agency, working with Border Force, Op Destabilise has exposed Russian kleptocrats, drug gangs, and cyber criminals – all of whom relied on the flow of dirty money.”

The NCA coordinated its efforts with international agencies, including OFAC, the DEA, the FBI, and European authorities. The agency also worked closely with UAE officials to disrupt related money laundering activities.

The revelations and actions under Operation Destabilise represent a decisive blow to criminal networks and reaffirm the commitment of UK and international law enforcement to disrupt illicit financial schemes threatening global security and economic stability.

By fLEXI tEAM