The United States has blocked a money laundering channel for the Russian elite and cybercriminals

The United States has announced sanctions against Russian citizen Ekaterina Zhdanova and her accounts on cryptocurrency exchanges. With their help, she helped Russian oligarchs and cybercriminals move hundreds of millions of dollars abroad.

This was reported by the press service of the US Treasury Department.

The sanctions against Zhdanova are in line with the G7 commitments to combat sanctions evasion and close loopholes that allow the Russian state, its elites, proxies and oligarchs to use virtual currency to offset the impact of international sanctions.  

"Through key intermediaries such as Zhdanov, Russian elites, ransomware groups, and other illegal entities' entities have attempted to circumvent U.S. and international sanctions, including through the use of virtual currency," said Brian Nelson, U.S. Under Secretary of the Treasury for Combating Terrorism and Financial Intelligence.  

According to the department, in March last year, Zhdanova helped a Russian client conceal the source of his wealth in order to transfer more than $2.3 million to Western Europe fraudulently through a fraudulent investment account and real estate transaction. In another case, she helped a Russian oligarch transfer more than $100 million to the UAE.

EFFECT OF THE SANCTIONS

As a result of today's action, all property and interests in property of the above named person located in the United States or owned or controlled by U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are directly or indirectly, individually or in the aggregate, 50 percent or more owned by one or more blocked persons are also blocked. Except as permitted by a general or special license issued by OFAC, or where an exception exists, OFAC regulations generally prohibit all transactions by U.S. persons in or within (or transiting through) the United States that involve any property or interests in property of designated or otherwise blocked persons. 

In addition, financial institutions and other persons that engage in certain transactions or activities with sanctioned persons and entities may be subject to sanctions or enforcement actions. Prohibitions include making any contribution or provision of funds, goods or services by, to or for the benefit of any designated person, and receiving any contribution or provision of funds, goods or services from any such person.