UK and US authorities have taken a significant step in the fight against money laundering. On Wednesday, they announced a major crackdown on two billion-dollar money laundering rings. These rings, as officials claim, have been facilitating the cleaning of money for Russia's elite, cybercriminals, and drug-runners worldwide. The investigation, which lasted for three years by the UK's National Crime Agency (NCA), has provided some of the clearest public evidence yet on how Russian-speaking groups act as a financial clearinghouse. After Western governments imposed sanctions on Russia due to its full-scale invasion of Ukraine in 2022, Russian elites needed a new place to hide their money. And these two alleged money-laundering networks offered them a lifeline.

Sanctions and Arrests

The US Treasury Department has sanctioned alleged senior members of one of the money-laundering rings known as TGR. Those sanctioned include a Ukrainian man named George Rossi, a Russian woman named Elena Chirkinyan, and a Latvian man named Andrejs Bradens. All are alleged to be key players in the laundering network. CNN is trying to reach them for comment. Additionally, Pullman Global Solutions LLC, owned by Bradens and based in Wyoming, was also sanctioned.In the UK, 84 arrests have been made in connection with this activity. The NCA's head of cyber intelligence, Will Lyne, told CNN that as things became more difficult for Russian elites, they turned to these laundering networks to continue enjoying their lifestyles across the West.

Money Laundering Cycles

A typical money laundering cycle through these networks is as follows. Cybercriminals in Russia need a place to send their cryptocurrency. So, they swap it for cash with a drug gang in the UK. The drug gang then uses the crypto to buy drugs from a South American cartel and sells those drugs on the streets of the UK. The money launderers take the cash from the drug sale and move it from the UK into the legitimate global banking system.NCA officials allege that the Kremlin has directly benefited from some of this money laundering, which has been used to fund Russian espionage operations.

Alleged Money Launderer in France

The alleged money-launderer in custody in France is a Russian woman named Ekaterina Zhdanova. She has been a long-running target of US law enforcement. The Treasury Department sanctioned her last year for her alleged elaborate money-laundering schemes. State Department spokesperson Matthew Miller accused her of using cryptocurrency to launder hundreds of millions of dollars on behalf of sanctioned Russian elites. CNN has requested comment from the Russian embassy in London and French authorities, but attempts to reach Zhdanova for comment were unsuccessful.The Treasury Department has accused Zhdanova of laundering over $2.3 million on behalf of hackers who have used a type of ransomware called Ryuk. Ransomware attacks using Ryuk have been a menace to the US health care sector. One suspected Ryuk attack in 2020 forced hospitals at the University of Vermont Health Network to delay chemotherapy and mammogram appointments.

Combating Transnational Crime

This investigation is just one of the latest examples of how cops on multiple continents have to use a combination of high-tech tools to trace crypto payments and old-school methods like stakeouts and undercover informants to pursue transnational crime gangs. CNN previously reported that multiple US law enforcement agencies, including the DEA and IRS, have used similar methods to ramp up their pursuit of Mexican drug cartels importing fentanyl into the US.