An IMGW News Report
A 24-year-old Russian who acquired Maltese citizenship in 2022 operated a global ‘“’professional banking service for criminals’, according to the UK’s National Crime Agency (NCA). Semen Kuksov, who obtained a Maltese passport under the government’s citizenship-by-investment scheme alongside his father, was linked to a billion-dollar money-laundering network that supported organised crime, drug cartels, and cybercriminals.
“This case heightens scrutiny of Malta’s citizenship-by-investment programme, which, despite being recognised as one of the world’s most rigorous, has faced criticism in recent years”
The NCA’s investigation, Operation Destabilise, uncovered two vast Russian crime networks laundering money through cash-for-crypto schemes. These networks were tied to Kremlin elites, enabling them to bypass sanctions and finance activities like espionage and luxury acquisitions. The networks swapped suitcases of cash for cryptocurrency to fund everything from UK drug gangs to sanctioned Russians’ lifestyles.
Kuksov was found to have laundered over £12 million in just 74 days, operating an underground cryptocurrency exchange that facilitated these transactions. Surveillance footage revealed him managing cash couriers, with money often hidden in everyday items like washing powder boxes. One courier, Fawad Saiedi, was arrested carrying £250,000 in cash, marking a critical breakthrough in the investigation.
Operation Destabilise disrupted these networks at multiple levels, seizing £20 million in cash and exposing a connection between Russian elites, UK drug cartels, and South American cocaine networks. The operation also revealed that ‘illicit finance ground zero’ was Federation Tower in Moscow, a fortified skyscraper housing firms dealing in stolen cryptocurrency and cyberattack profits.
Kuksov was sentenced to five years and seven months in prison. His father, Vladimir, who also acquired Maltese citizenship, has publicly distanced himself from his son’s activities.
The Community Malta Agency, responsible for Malta’s citizenship scheme, stated in April that it was reviewing Kuksov’s case. Despite repeated inquiries from IMGW News, the agency provided no further updates, maintaining that the matter was under review. In one response, the agency stated: “With reference to your enquiry, kindly note that the Community Malta Agency is currently reviewing the official documentation of the case and is seriously considering to advise the Minister to initiate the process of deprivation of citizenship.”
This case heightens scrutiny of Malta’s citizenship-by-investment programme, which, despite being recognised as one of the world’s most rigorous, has faced criticism in recent years, underscoring global concerns about the potential for financial crime and international corruption.
