CySEC-Regulated Firm TCR International under French Investigations
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A financial company based in Cyprus providing wealth management services is in trouble following suspicious transactions valued at hundreds of millions.
The company in question is TCR International Limited, licensed by the Cypriot regulator CySEC. It is now facing an anti-money laundering investigation in France. The investigation claims the company transferred more than €220 million in suspicious funds between 2019 and 2021.
French Investigators Probe TCR
The investigations revolve around hundreds of millions of euros worth of suspicious transactions channeled through accounts owned by TCR International.
Investigators are investigating whether these funds, which tally above 220 million euros, came from illicit sources and lacked an economic purpose. The French investigators are also looking into the details of clients at TCR International.
TCR International offers investment advisory and asset management services globally. It targets both corporates and high net worth. The company holds a Cypriot Investment Firm (CIF) license, which FX/CFD brokers also use.
Violating Sanctions
A local publication published records showing that the clients at TCR International were linked to a Russian banking entity sanctioned by the EU and the US. The clients in question include Russian founders behind leading financial apps and shell companies.
The investigations into TCR International started after French investigators received information from US authorities probing the financial network of a Russian paramilitary group known as Wagner.
The US Department of Justice wrote a formal request to French authorities seeking access to the transactions done by TCR International through BNB Paribas. However, the investigations have not revealed that TCR is linked to the Wagner group.
The probe focuses not only on TCR International but also on BNB Paribas. The authorities want to determine whether the two entities complied with anti-money laundering laws before settling transactions.
TCR International has refuted the claims, saying it conducts a thorough background check on its clients. The company has also denied any wrongdoing. BNB Paribas is also no longer associated with TCR International after terminating the partnership in early 2022.
The investigation points towards the challenges banks face when handling funds from unknown sources. Banks must always conduct thorough Know Your Customer (KYC) checks to detect suspicious activity.
TCR International maintains that it has not committed any wrongdoing. The outcome of this probe will prove whether these allegations are true. Investigations will have to go through complex layers of financial data to trail all transactions.
