A sophisticated billion-pound money laundering network, operating from Moscow and active within the UK, has been exposed for funnelling profits from British cocaine users to support Russia's war in Ukraine and fund espionage activities.
From Friday Night Highs to Global Conflict
In a stark revelation, the National Crime Agency (NCA) has detailed how the illicit drug trade on British streets is directly connected to high-level geopolitics. Sal Melki, Deputy Director for Economic Crime at the NCA, stated that for the first time, authorities can trace a direct line from a casual drug purchase in the UK to the Russian military complex.
"We can draw a really clear thread between someone buying some cocaine on a Friday night in the UK all the way through to geopolitical events that are causing suffering around the world," Melki said. The network converts dirty cash from organised crime groups into untraceable cryptocurrency for a fee, effectively hiding illegal profits from law enforcement.
The Mastermind and the Spy Ring
At the centre of this global operation is Russian national Ekaterina Zhdanova, 39, the alleged mastermind behind a cryptocurrency network called Smart. Zhdanova, who was sanctioned by US authorities in late 2023, is currently being held in France.
The NCA confirmed that the Russian Intelligence Services attempted to use this very network to provide funds to a Bulgarian spy ring, which was based in a 33-room guest house in Great Yarmouth, Norfolk. The group, led by Orlin Roussev and including members Biser Dzhambazov, Katrin Ivanova, Tihomir Ivanchev, Ivan Stoyanov, and Vanya Gaberova, was jailed at the Old Bailey in May.
Bank Purchase and Sanctions Evasion
The scale of the operation is vast. The NCA disclosed that a company linked to the network now owns a controlling stake in Keremet Bank, based in Kyrgyzstan. This financial institution has been directly involved in purchasing items for the Russian military, illustrating how the laundered money supports the war effort.
Among the criminal clients using this sophisticated laundering service is the notorious Kinahan organised crime group. The network is known to operate in at least 28 UK cities and towns.
Through Operation Destabilise, the NCA and its international partners have made significant inroads into dismantling this network. In the UK alone, there have been a total of 128 arrests, with over £25 million seized in cash and cryptocurrency. A recent phase of the operation saw 45 suspected money launderers arrested and over £5.1 million in cash confiscated in under a year.
Security Minister Dan Jarvis commented on the findings, stating, "This complex operation has exposed the corrupt tactics Russia used to avoid sanctions and fund its illegal war in Ukraine. We are working tirelessly to detect, disrupt, and prosecute anyone engaging in activity for a hostile foreign state."
Mr Melki concluded by emphasising the network's scope, noting it operates at all levels, "from collecting the street cash from drug deals, through to purchasing banks and enabling global sanctions breaches."
