Financial Crime World

Title: Conservative Party Donor Javad Marandi Identified as Person of Interest in £5.6m Money Laundering Investigation

BBC News Investigation

By Jane Doe and Tom Smith

Javad Marandi, a major Conservative Party donor, has been identified as a person of interest in an elaborate money laundering scheme. The National Crime Agency (NCA) launched an investigation in 2017 concerning the Azerbaijani Laundromat, which saw over $2.9bn (£2.3bn) of dirty money laundered across the world.

Javad Marandi’s Role in the Money Laundering Scheme

Marandi, a wealthy businessman, donated over £633,800 to the Conservative Party. Following a High Court ruling, his name was made public in October 2021 as a person of interest. The NCA discovered that some of Marandi’s overseas interests were involved in the money laundering activities, specifically in relation to Javanshir Feyziyev, a member of Azerbaijan’s parliament.

Seizure of £5.6m from Feyziyev’s London-based Family

In January 2022, a judge ordered the seizure of £5.6m ($7m) from the London-based family of Feyziyev due to their involvement in the money laundering case.

Javad Marandi’s Businesses and Charities

Marandi, born in Iran and raised in London, has an extensive business portfolio in the UK and abroad. His holdings include:

  • The Conran Shop
  • A stake in Anya Hindmarch Ltd
  • An exclusive private members’ club and hotel in Oxfordshire
  • Marandi Foundation
  • Centrepoint

None of Marandi’s UK businesses or organizations are part of the NCA’s investigation.

The Azerbaijani Laundromat Scheme Exposure

France 3 and other investigative journalists exposed the Azerbaijani Laundromat scheme, which involved companies and bank accounts across the world being used to launder money stolen from Azerbaijan. It was described as one of the most significant post-Soviet looting cases by Paul Radu, co-founder of the Organised Crime and Corruption Reporting Project (OCCRP).

NCA’s Investigation and Marandi

The NCA investigation into the Feyziyev family’s finances in the UK uncovered the link to Marandi and companies sharing the name Avromed. These companies were believed to be central to the money transfer, with one company registered in the Seychelles and having a bank account in the Baltics that received large sums from Glasgow-registered firms.

Fictitious Invoices and Contracts

The UK court found that the invoices and contracts supporting these business transactions were entirely fictitious and produced to mask the underlying money laundering activities.

The NCA neither confirmed nor denied whether it is actively investigating Marandi’s finances. Marandi’s legal team stated that the businessman adamantly denied any involvement in wrongdoing and that the funds were lawfully earned and transferred through exchange houses due to tight currency controls in Azerbaijan during the period in question.

The Conservative Party responded by stating that they only accept donations from permissible sources and that all donations are properly and transparently declared to the Electoral Commission and comply fully with the law.

Concerns about Political Party Donation Verification

The revelations raised concerns about how political parties verify the origins of their donations. Labour MP Margaret Hodge called for regulations requiring all parties to do due diligence on donation sources. SNP MP Alison Thewliss asked Home Office minister Chris Philp if Marandi had any meetings with ministers or received any government contracts.

Transparency International UK’s Opinion

Duncan Hames, director of policy at Transparency International UK, stated, “It’s not good enough just to check if someone is on the electoral roll. Our political parties need to be much more careful about who they take money from.”

Marandi’s legal team plans to appeal the High Court ruling allowing his name to be made public. The case is ongoing.