Exposed: multibillion-dollar money laundering system used by criminals and spies

A multibillion-dollar money laundering network run by two Russian millionaires and used by UK drug dealers to hide criminal cash has been brought down in an international sting.

- MARGARET DAVIS

The system was used by Russian-speaking hackers with millions in cryptocurrency that they needed to turn into cash and assets, as well as street gangs in Britain who had physical money they needed to launder.

Irish cartel the Kinahans are also accused of using the system, run by two networks called Smart and TGR, to get cryptocurrency in return for cash. Even the Russian state used the secretive network to get money to spies based in other countries, and it is also claimed it was used to move funds from the state-controlled TV network RT, formerly Russia Today, to journalists based in the UK.

Russian citizens placed under sanctions amid the war in Ukraine took advantage of the network to disguise the origin of their cash and buy property in Britain, the National Crime Agency (NCA) said.

Smart was run by Ekaterina Zhdanova, a Russian national said to have been born in Siberia before making it in the financial industry and building up connections in Moscow. She has been arrested in France, and had already been sanctioned by the US last year.

Georgy Rossi, whose current whereabouts are unknown, was the boss of TGR – and also came from a background in Russian banking before relocating to Europe.

They are both believed to have made millions of pounds from money laundering, charging around three per cent for transactions involving billions. The funds were often routed through the Middle East, including the United Arab Emirates, and the network had reach across more than 30 countries.

Rob Jones, NCA director general of operations, said Operation Destabilise is the agency's largest money-laundering investigation in the last 10 years. So far 84 arrests have been made and £20m seized within the UK. The network would need to launder around £700m to make that money back, according to the NCA.