WASHINGTON - The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced today the sanctioning of five individuals and four entities associated with the TGR Group, a network implicated in facilitating money laundering and circumventing sanctions imposed on Russian elites. The announcement comes amid heightened scrutiny of digital payment networks, with the global digital payments sector projected to reach $15 trillion in transaction value by 2024. The coordinated international effort involved agencies from the United Kingdom (TADAWUL:4280), the United Arab Emirates, the Drug Enforcement Administration, and the Financial Crimes Enforcement Network.
The TGR Group, led by Ukrainian national George Rossi, has been identified as a complex sanctions evasion and money laundering operation with global reach, utilizing digital assets, including U.S. dollar-backed stablecoins, to obscure the movement and origin of illicit funds. This case highlights the growing intersection of traditional and digital finance, with cryptocurrency transactions now representing over $1 trillion in annual volume. Track the latest developments in the digital payments sector with InvestingPro, offering exclusive insights and analysis of fintech companies and market trends. The network has provided services that include exchanging cash for cryptocurrency, issuing prepaid credit cards, and assisting in the purchase of property in the UK for high-net-worth Russian nationals.
Acting Under Secretary for Terrorism and Financial Intelligence Bradley T. Smith emphasized the commitment of the United States and its G7 partners to disrupt and impose costs on illicit actors that exploit digital assets to transfer wealth. The sanctions are part of ongoing efforts to hold accountable those who seek to undermine international sanctions.
OFAC's actions target key figures in the network: George Rossi, Elena Chirkinyan, Andrejs Bradens, and entities such as TGR Partners, TGR Corporate Concierge LTD, and TGR DWC-LLC. These individuals and entities are designated pursuant to Executive Order (E.O.) 14024, which addresses the financial services sector of the Russian Federation economy.
Additionally, the sanctions extend to affiliates of previously sanctioned Russian money launderer Ekaterina Zhdanova. Khadzi-Murat Dalgatovich Magomedov and Nikita Vladimirovich Krasnov have been designated under E.O. 14024 for their roles in facilitating laundering transactions and coordinating with Zhdanova.
The implications of these sanctions are extensive. All property and interests in property of the designated individuals and entities that are in the U.S. or in the possession or control of U.S. persons are blocked and must be reported to OFAC. For investors monitoring the financial services sector, InvestingPro's advanced screening tools provide comprehensive analysis of companies' regulatory compliance metrics and risk exposure, essential for making informed investment decisions in today's complex regulatory environment. Financial institutions and other persons engaging in transactions with the sanctioned parties may also face sanctions or enforcement actions.
This enforcement action underscores the U.S. government's determination to prevent the misuse of digital assets for illicit purposes and to maintain the efficacy of its sanctions regime. The Treasury's press release provided detailed information on the individuals and entities affected by today's sanctions, based on a press release statement.
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