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On Wednesday, 5 December, the United States and the United Kingdom announced the dismantling of a large-scale money laundering network that helped Russian wealthy individuals circumvent international sanctions. The TGR Group network, which operated around the world, also financed criminal organisations, including drug traffickers and spies. As a result of a large international law enforcement operation that covered more than 30 countries, dozens of people were arrested and significant amounts of cash and cryptocurrency were confiscated. This was an important step in the fight against illegal financial schemes that support Russian aggression, Time Ukraine Israel reports, citing Golos Ameriki.
Operation Destabilisation and international cooperation
The US Department of the Treasury has imposed sanctions on members of the TGR Group network who helped Russian oligarchs use cryptocurrency to circumvent sanctions imposed after Russia’s invasion of Ukraine. In addition, the sanctions affected five individuals and four organisations that were part of this criminal network. According to the US Treasury, the TGR Group actively promoted the use of stablecoins pegged to the US dollar to evade international financial restrictions.
According to Bradley Smith, Acting Deputy Secretary of the U.S. Treasury, this network provided the Russian elite with opportunities to circumvent sanctions, enriching not only individuals but also the Kremlin.
Joint fight against international organised crime
The operation, codenamed “Destabilisation”, organised by the UK’s National Crime Agency (NCA), was the basis for the dismantling of an international criminal network. The operation covered the UK, Europe, the Middle East and South America, and law enforcement agencies from France, Ireland and the United Arab Emirates also took part in the operation. As a result, 84 people were arrested and more than £20 million (over $25 million) in cash and cryptocurrency was seized.
Sanctioned persons and the role of cryptocurrency
Among the individuals sanctioned is Georgy Rossi, a Ukrainian citizen who, according to investigators, controls the TGR Group. Also in the spotlight was Katerina Zhdanova, the head of the Smart network, who was previously sanctioned for financing Russian intelligence through fraudulent channels.
The TGR Group and Smart networks have been actively using cryptocurrencies to finance criminal transactions. As reported in the NCA, Russian criminal groups exchanged cryptocurrency for cash, which was used to finance drug traffickers, thus avoiding the physical movement of money across borders.
Sanctions and consequences for participants
The U.S. Treasury Department’s sanctions prohibit any U.S. person or entity from engaging with sanctioned persons and freeze assets held by such persons in the United States. This is an important step in the fight against international financial crime that supports the activities of illegal regimes and terrorist groups.
