Russian convicted money launderer stripped of Maltese citizenship

A convicted Russian money-launderer has been stripped of his Maltese citizenship by the government.

Semen Kuksov, 25, who ran a “professional banking service for criminals across the world,” acquired Maltese citizenship together with his father in 2022.

Kuksov was last year imprisoned in the UK for over five years for helping launder over €14 million together with an associate.

Following a “review” of Kuksov’s case which began last year, the government formally announced this week that he is being “deprived” of his Maltese citizenship.

UK prosecutors say Kuksov formed part of a wider billion-dollar money-laundering network used to support serious and organised crime, ranging from Russian ransomware attacks to drug dealing in the UK.

Details about Kuksov’s role in the network feature in an NCA-led 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.

Rob Jones, the NCA’s director of operations, said Operation Destabilise has exposed billion-dollar money laundering networks operating in a way previously unknown to international law enforcement or regulators.

Kuksov was last year jailed for five years, seven months for his role in the network.

The NCA said Kuksov directed and exercised influence over others involved in money laundering.

An NCA operations manager said Kuksov ran what amounted to a professional banking service for criminals around the world, who could not access the legitimate banking system due to the source of their funds.

Kuksov arranged collection of cash from groups that wanted to get rid of it and delivered cash to groups that needed it, the NCA said.

While money-laundering is often seen as a victimless crime, the NCA said without the services of people like Kuksov, the business model of criminal groups they are enabling would be broken as they would not be able to access their ill-gotten gains.

Times of Malta and OCCRP had revealed in April how Kuksov featured on the list of people granted Maltese citizenship in 2022 under a government scheme to sell citizenship to wealthy individuals.

Kuksov’s father Vladimir, a Russian businessman who also acquired a Maltese passport, has not been linked to the case and has distanced himself from his son.

The citizenship scheme gave wealthy foreigners the chance to obtain Maltese citizenship by making financial contributions ranging from €600,000 to €750,000, alongside property investments and donation.

A top European court in April ruled that the citizenship scheme violates EU law.

The government has since said it has scrapped the scheme and replaced it with a broad citizenship-by-merit system.

In a briefing, the home affair minister said the new system removed the transaction element to citizenship, which gave wealthy foreigners the chance to obtain Maltese citizenship by making financial contributions ranging from €600,000 to €750,000, alongside property investments and donations.