UK authorities have taken a strong stance against money laundering, as evidenced by recent arrests and seizures from two major Russian criminal networks. The National Crime Agency (NCA) announced Operation Destabilise, a significant effort to uncover the Smart and TGR networks, which were previously unknown.
These networks, primarily catering to transnational crime groups like the Kinahan Cartel and Russian clients such as Russia Today, were involved in laundering funds and bypassing financial restrictions to invest money in the UK. Additionally, they assisted Russian cybercriminals like the Ryuk group in laundering millions of dollars in ransom payments.
The core of the operation focused on a complex scheme where TGR and Smart collected funds in one country through physical cash transfers and then made the equivalent value available in another country, often in cryptocurrency. This streamlined the movement of cash generated by crime groups, laundered crypto for cybercriminals, and helped Russian elites bypass sanctions.
The UK was identified as a key hub for this illicit activity, although both networks operated in 30 countries and often routed funds through the Middle East. The US Treasury’s Office of Foreign Assets Control (OFAC) also imposed sanctions on the leaders of these networks and four businesses associated with TGR.
Several investigations conducted as part of Operation Destabilise led to arrests and jail time for individuals involved in money laundering activities. Cash courier networks operating in multiple UK locations were dismantled, resulting in the arrest of 84 individuals and the seizure of £20 million in cash and crypto.
NCA director general of operations, Rob Jones, highlighted the success of the operation in disrupting the criminal networks and sending a clear message that the UK is not a safe haven for money laundering. While the ringleaders of these networks remain at large, the NCA’s actions have dealt a significant blow to their operations.
The financial impact on Smart and TGR has been substantial, with the networks operating on low profit margins. The NCA estimates that they would need to launder around £700 million to recover the £20 million already seized. Despite the challenges posed by these criminal networks, UK authorities remain committed to combating money laundering and ensuring that the country is not exploited for illicit financial activities.