UK Drug Gangs Exposed: Russian Criminals Laundering Millions Amid Lockdown

In a significant breakthrough, the NCA reveals a multi-billion-dollar money laundering operation involving Russian criminals assisting UK drug gangs. This global network, identified during the COVID-19 lockdown, has led to the arrest of 84 individuals and the seizure of millions in cash. Key players in the scheme, including Ekaterina Zhdanova, have been sanctioned by US authorities.

The National Crime Agency (NCA) has unveiled a staggering multi-billion-dollar money laundering scheme connecting British drug gangs with Russian criminals. This discovery marks a monumental success in combating money laundering in the UK, made possible by investigations conducted amidst the challenges of the COVID-19 lockdown.

The intricate network is centered in Moscow, where it has enabled UK gangs, struggling to move illicit cash due to lockdown restrictions, to convert their street profits into untraceable cryptocurrency. This absorption process not only helped to obscure drug profits from law enforcement but also allegedly supported Russian state funding for espionage activities.

With the operation stretching across 30 countries, NCA officials revealed that 84 arrests have been made so far, including 71 individuals in the UK. During a recent briefing, UK Security Minister Dan Jarvis emphasized the significance of this operation, which he described as a "web of Russian kleptocrats, drug gangs, and cyber criminals."

Among those implicated is Ekaterina Zhdanova, who heads the cryptocurrency exchange Smart in Moscow. She has been previously sanctioned by US authorities for her role in moving funds on behalf of Russian elites. The US Treasury has stepped in to impose additional sanctions on key players, including George Rossi, the head of another network called TGR.

The NCA traced the origins of this laundering operation back to the early days of the pandemic in 2021, when many drug gangs found themselves unable to convert revenue into legitimate cash flow. Zhdanova’s networks, Smart and TGR, emerged as facilitators, offering a fast-track method for gangs to launder their drug profits. Through these networks, dirty cash was funneled through seemingly legitimate businesses in the UK or transported via mules.

One lead arose from the arrest of Fawad Saiedi, a courier who was found transporting £250,000 in cash. Investigators soon linked him to Zhdanova’s network. As the NCA intensified its scrutiny, it discovered a wider pattern involving many operatives coordinating cash movements for multiple gangs. With a focus on disrupting this currency exchange pipeline, agency officials indicated they now have the upper hand over the drug trade.

Further heightening concerns, investigators stated that the Russian state has leveraged these networks for espionage funding as well. Sanctions from the US Treasury have amplified efforts to crack down on this criminal enterprise, highlighting both the national security and law enforcement implications of its operations.

As investigators continue to pursue leads and dismantle the criminal infrastructure, the NCA has affirmed its commitment to thwarting future money laundering schemes, warning that potential couriers of illicit funds can no longer operate with confidence in the previously established secrecy of their dealings.