Title: Seychelles Police and Regulators Raids Alpha Consulting Over Money Laundering Allegations in the Wake of Pandora Papers Investigation
Background
In an unprecedented development following the International Consortium of Investigative Journalists (ICIJ) and media partners’ investigation into money laundering activities, Seychelles authorities have raided the offices of offshore financial service provider Alpha Consulting.
Alpha Consulting in the Spotlight
Alpha Consulting, a Seychelles-based offshore financial service provider, became the focus of the investigation when it was identified in the Pandora Papers investigation. According to reports by Finance Uncovered, the BBC, and Seychelles Broadcasting Corporation, the firm helped establish front companies for individuals in Vladimir Putin’s inner circle by exploiting a UK secrecy loophole.
Notable Figures Linked to Alpha Consulting
Some of the notable figures linked to Alpha Consulting include:
- Yevgeny Prigozhin: The late boss of the Wagner Group, whose company, Beratex Group Ltd, was sanctioned by the US in 2019.
- Leonid Reiman: A close friend of President Putin and former Russian communications minister, who had Alpha act as a director for one of his firms.
Defending the Practice
Victoria Valkovskaya, the founder of Alpha Consulting, defended the practice of using nominee directors. She highlighted it as not new or illegal in the industry, emphasizing that Alpha was not responsible for the actions of the British companies they helped establish.
Alpha’s Clientele
Alpha’s clientele included some high-profile individuals:
- Roman Avdeev: Russian billionaire and reported Kremlin ally
- Alexander Vinnik: Crypto scion and convicted money-launderer
- Isabel dos Santos: Angolan billionaire allegedly embezzler and money launderer
Controversial Activities
A significant number of Alpha’s UK-registered firms were reportedly involved in controversial activities, with alleged connections to corruption schemes, a fugitive oligarch, and unlicensed pharmaceutical sales. While there is no indication that Alpha or the nominee directors took part in managing these businesses, some firms took advantage of a particular type of corporate entity – limited partnerships – that did not need to disclose the true owners to regulators.
Raids and Investigations
Following the release of the investigation on November 2, 2022, Seychelles police and financial regulators swooped in on Alpha Consulting’s offices in Victoria. They seized hard drives and other documents and opened an investigation to probe into the allegations. Alpha Consulting stated they were cooperating “fully to their demands” and remained “at authorities’ disposal ‘at all times.”
Establishment and Growth
Founded in the Seychelles in 2008 by Moscow-born Valkovskaya and her now-ex husband, a Seychelles native, Alpha disclosed in its 2019 annual report that 75% of its customer base was Russian. In 2022, ICIJ added over 800 Russian nationals’ offshore company names and other data to its Offshore Leaks Database from the leaked Alpha Consulting files.