FinCEN Files: Sanctioned Putin associate ‘laundered millions’ through Barclays

Vladimir Putin with Arkady Rotenberg in 2009Symbol copyright
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Vladimir Putin and Arkady Rotenberg had been buddies since adolescence

One in all Vladimir Putin’s closest buddies will have used Barclays Financial institution in London to launder cash and dodge sanctions, leaked paperwork counsel.

Billionaire Arkady Rotenberg has identified the Russian president since adolescence.

Monetary restrictions, or sanctions, have been imposed on Mr Rotenberg by means of america and the EU in 2014, because of this Western banks may face critical penalties for doing trade with him.

Barclays says it met all its criminal and regulatory tasks.

A leak of confidential information – banks’ “suspicious task studies” – disclose how corporations believed to be managed by means of Mr Rotenberg saved the name of the game accounts.

The paperwork, referred to as the FinCEN Information, had been noticed by means of the BBC’s Landscape programme.

  • All you want to find out about FinCEN paperwork leak

Interior circle

In March 2014 america hit Russia with financial sanctions following the annexation of Crimea in Ukraine.

The Treasury Division designated Mr Rotenberg, 68, and his brother Boris, 63, “contributors of the Russian management’s interior circle”.

The pair had sparred and educated in the similar judo health club as Putin after they have been younger.

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The businessman and Russian president attending judo coaching in Sochi ultimate 12 months

Lately, Arkady Rotenberg’s corporations constructed roads, a gasoline pipeline and an influence station via contracts awarded by means of the Russian state.

America Treasury mentioned the brothers “equipped strengthen to Putin’s puppy tasks” and “made billions of greenbacks in contracts for Gazprom and the Sochi Iciness Olympics awarded to them by means of Putin”.

In 2018, america added Arkady Rotenberg’s son Igor to its record of sanctioned people.

The purpose of the sanctions is to bring to an end named other people from all the Western monetary device.

But the Rotenbergs seem to have persevered shifting money via the United Kingdom and US.

Artwork and cash laundering

In 2008, Barclays opened an account for a corporation referred to as Benefit Alliance.

The leaked paperwork display the corporate moved £60m between 2012 and 2016. Most of the transactions took place after the Rotenberg brothers were sanctioned.

In July this 12 months, an investigation by means of america Senate accused the Rotenbergs of the usage of secretive purchases of high-priced artwork to evade sanctions – probably the most corporations concerned within the scheme was once Benefit Alliance.

US investigators concluded there was once robust proof that Benefit Alliance was once owned by means of Arkady Rotenberg, and that the corporate had used its Barclays account in London to shop for thousands and thousands of greenbacks of artwork for him.

A record famous how “secrecy, anonymity, and a loss of legislation create an atmosphere ripe for laundering cash and evading sanctions”. Public sale properties in america and UK “failed to invite elementary questions” concerning the consumers of the artwork.

Regardless of the sanctions, Arkady seems to have paid $7.5m to procure the René Magritte portray L. a. Poitrine.

In 17 June 2014 an organization connected to Arkady despatched the money from Moscow to Alliance’s Barclays account in London. Tomorrow Barclays despatched the money to the vendor in New York.

Account closed

In April 2016, Barclays started an inside investigation of a couple of accounts it suspected of being connected to the Rotenbergs.

Six months later, the financial institution closed Benefit’s account after getting concerned that it was once getting used to transport suspect price range.

However the leaked suspicious task studies (SARs) display that different Barclays accounts with suspected hyperlinks to the Rotenbergs remained open till 2017.

One such corporate was once Ayrton Construction Restricted.

Consistent with the information, Barclays have been suspicious of Ayrton’s actions and concluded that “[Arkady] Rotenberg is the real proprietor of Ayrton”.

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Reuters

Barclays didn’t remark when requested by means of Landscape about what number of accounts it suspects have been owned by means of the Rotenbergs.

A spokesperson for Barclays mentioned: “We imagine that we have got complied with all our criminal and regulatory tasks together with in the case of US sanctions.”

“Given the submitting of a SAR isn’t itself proof of any exact wrongdoing, we might handiest terminate a shopper dating after cautious and function investigation and research of the proof, balancing possible monetary crime suspicions with the chance of ‘de-banking’ an blameless buyer.”

The Rotenbergs declined to remark.

The FinCen Information is a leak of secret paperwork which disclose how main banks have allowed grimy cash all over the world. In addition they display how the United Kingdom is regularly the vulnerable hyperlink within the monetary device and the way London is awash with Russian money.

The information have been bought by means of BuzzFeed Information which shared them with the World Consortium of Investigative Reporters (ICIJ) and 400 newshounds all over the world. Landscape has led analysis for the BBC.

FinCEN Information: Complete protection; apply response on Twitter the usage of #FinCENfiles; within the BBC Information app, apply the tag “FinCEN Information” Watch Landscape at the BBC iPlayer (UK audience handiest).

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