Cypriot financial firm TCR International facing a French AML probe

A Cypriot financial company that offers wealth management services, TCR International Limited, recently found itself facing major challenges due to some suspicious transactions worth hundreds of millions of euros.

The company, based in Cyprus and licensed by the local financial regulator, CySEC, ended up attracting the eye of the French authorities, which launched an anti-money laundering probe.

France opens an AML probe

According to the investigators, TCR International was involved with channeling more than 220 million EUR between 2019 and 2021. The funds have a suspicious origin, which led the authorities to believe that the firm may be involved with money laundering for unknown parties.

The French authorities responded by launching an AML probe led by anti-organized crime authorities. The probe is focused on the hundreds of millions of EUR sent in suspicious transactions to BNP Paribas Securities Services in France several years earlier.

The amount in question, around €220 million, is now being examined as the authorities are trying to determine if the money has an illicit origin or lack of economic rationale. In addition to the money itself, the identity of the platform’s clients is also under scrutiny.

TCR made a name for itself as a provider of investment advisory and asset management services. It operates globally, seeking to provide its services to high-net individuals as well as companies that decide to use it for their needs.

However, a French news outlet known as Le Monde recently leaked records that show ties between TCR’s clients and a sanctioned Russian banker, which was previously hit by EU and US authorities following the start of the war in Ukraine. The clients include several Russian founders of financial applications, as well as potential shell companies.

TCR claims it is innocent as the investigation proceeds

After the French government received intelligence from the investigators in the US who previously examined financial networks connected to a Russian paramilitary organization, the Wagner Group, they opened their own probe. The US DoJ even offered legal assistance regarding TCR International and the transactions conducted through BNP Paribas.

At this time, there were no reports presenting evidence that would connect TCR to Wagner directly or to its late leader, Yevgeny Prigozhin. However, the investigation remains open, as the authorities seek to determine whether TCR and BNP Paribas fulfilled due diligence duties, as they are obligated to do under the standing AML regulations.

Meanwhile, TCR commented for Le Monde, stating that rigorously vetting its clients is part of its standard practice. As such, the company denied any connections to illicit finance. Even so, BNP Paribas suddenly terminated its contract regarding custody services with TCR International in January 2022.

While TCR claims that it is innocent, and BNP Paribas as opted to stay silent on the matter. This makes the outcome of the French investigation uncertain. However, the probe has highlighted compliance problems that banks tend to encounter when handling funds coming from shell companies.