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The States of Jersey Police have helped disrupt multi-billion Russian money laundering networks with links to drugs, ransomware and espionage in what the National Crime Agency called one of its "biggest uncoverings of organised crime", it has been revealed.
The investigation resulted in the arrest of 84 people, and the seizure of over £20m in cash and cryptocurrency.
The networks supported serious criminality around the world primarily by swapping cryptocurrency for cash, with their reach extending from the streets of the UK and mainland Europe, to the Middle East, Russia, and South America.
The criminals laundered money for organised crime gangs, including the Kinahan Organised Crime Group – a major Irish transnational organised crime syndicate alleged to be the most powerful in Ireland and one of the largest organised crime groups in the world.
The networks also laundered money for ransomware groups – including those behind Ryuk, a type of ransomware known for targeting large, public-entity Microsoft Windows cybersystems – and Russian elites seeking to bypass sanctions and access Western economies, including the UK.
One of the networks was also used to fund Russian espionage operations.
These powerful criminals were brought down following an investigation which started in Jersey in October 2021 when three criminals – Eshonkulov, Umurzokov, and Bata – were attempting to launder approximately £60,000 in used Jersey bank notes in the island.
The trio were arrested whilst in Jersey for three days, and charged with offences under Article 31(1) (d) Proceeds of Crime (Jersey) Law 1999.
Pictured: The trio arrested for money laundering following an investigation in 2021.
They pleaded guilty to a total of 22 charges of Money Laundering, and admitting to working for a UK based organised crime group.
In 2022, they were sentenced by the Royal Court of Jersey for a combined total of 10 years' imprisonment.
But this was just the beginning, as the local investigation identified wider offending in the UK.
Banking and phone evidence seized in Jersey was passed on to National Crime Agency (NCA) officers.
This investigation helped uncover a broader network of money laundering – which the NCA called one of their biggest uncoverings of organised crime.
Evidence from seized mobile phones, documentation, receipts and lists revealed their possible involvement in sub-letting UK properties paid for in cash, human and drug trafficking or prostitution.
The seized mobile phones held identities of Uzbekistanis, Hungarians, Latvians and Romanians, believed to have illegally entered the UK, to be housed in properties subject to illegal sub-letting.
All defendants had large sums of money moving in and out of their UK bank accounts.
Substantial amounts of money were transferred to and from UK business bank accounts, one of which had £4.31 million passing through its account within 10 months from 2021 to 2022.
Chief Officer of the States of Jersey Police, Robin Smith, said: “This operation demonstrates the effectiveness of our collaborative efforts with national agencies.
“The number of charges and the combined sentences should act as the strongest deterrent to ‘would be’ criminal networks seeking to launder money in our island.
“They have learned there is a high level of vigilance combined with high levels of technical sophistication and experienced investigators.
“It also illustrates how SOJP works closely with our highly professional colleagues at the NCA – they are an agency to be reckoned with.”
Pictured: Faith Shalamon works in the SOJP JFCU Joint Financial Crime Unit.
Faith Shalamon from the Joint Financial Crime Unit said: “The successful disruption of this sophisticated money laundering network highlights our commitment to combatting financial crime and protecting the integrity of our financial system.
“We are especially pleased to see our investigation work serve the NCA in uncovering one of their biggest organised crime networks.
“We are grateful for the vigilance of the local businesses and the community, whose co-operation was instrumental in achieving this outcome.
“The multi-agency response shows the strong stance that Jersey takes against money laundering.”
Will Lyne, Head of Cyber Intelligence at the NCA, said: "Operation Destabilise has exposed billion dollar Russian money laundering networks supporting a range of criminal activity in Europe, the Middle East, Russia and South America.
"By enabling Russian cyber criminality and violent criminal gangs dealing in drugs and firearms, the impact and harm of these networks is felt directly in communities in the UK and across the West.
"Alongside our policing partners we have disrupted these networks at every level. As well as exposing those pulling the strings at the very top, we have seized over £20 million in cash and cryptocurrency and taken out the key cash couriers supporting this illicit service in the UK.
"Jersey Police have been a key partner in that effort and their investigation disrupted criminals working with TGR to launder millions in illicit cash through UK businesses.”
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