A Russian man who ran a “professional banking service for criminals across the world” is set to be stripped of his Maltese citizenship.

Semen Kuksov, who acquired Maltese citizenship in 2022 under the government’s controversial passports scheme, was jailed in the UK this year for his role in a billion-dollar money laundering network.

A spokesman for Community Malta, the passport scheme’s regulator, said the responsible minister promptly instructed the start of procedures to deprive Kuksov of his Maltese citizenship.

Asked when the home affairs minister gave the order for procedures to begin, the spokesperson said: “I confirm that the process is ongoing in accordance with the relative provisions of the law”.

The process is ongoing in accordance with the relative provisions of the law- Home affairs ministry spokesperson

Kuksov was jailed in February after admitting to laundering over €14 million in “cash”, together with an associate.

Further details about the money-laundering network were revealed by the UK’s National Crime Agency this month as part of an investigation codenamed Operation Destabilise.

Operation Destabilise uncovered a complex scheme in which the networks collect funds in one country and make the equivalent value available in another, often by swapping cryptocurrency for cash.

Kuksov “admitted” to operating an underground cryptocurrency exchange.

The crime agency said the investigation exposed and disrupted Russian money laundering networks supporting crime around the world.

As part of the network, Kuksov and an associate helped launder over €14 million during a 74-day period.

The NCA said Kuksov directed and exercised influence over others involved in money laundering. He did this over a significant period and across borders, demonstrating a high degree of planning.

Kuksov’s network used physical tokens for cash handovers, described by the NCA as a common practice for cash-based money launderers.

Tokens are usually low-denomination bank notes that bear a unique serial number. This serial number is passed on before a cash handover takes place, and when the two parties meet, the person collecting the cash will produce the bank note to prove that they are the intended party. The token is usually then handed over, acting as a receipt that the handover has taken place.

 Additional reporting by Joanna Demarco/The Daphne Caruana Galizia Foundation.