JPMorgan and HSBC unknowingly processed payments for companies linked to Yevgeny Prigozhin’s Wagner mercenary group, according to a new report from the U.S.-based Center for Advanced Defense Studies (C4ADS).
The report notes that Wagner established an early presence in Africa in the mid-2010s by leveraging a global network of financial services and transportation to facilitate supply movements and generate revenue. C4ADS highlighted that intermediary banks and shipping companies were vital in connecting Wagner’s initial mining activities to the broader international economic system.
One key example cited is Prigozhin’s Sudanese mining company, Meroe Gold, which acquired industrial equipment, diesel generators, and spare parts from China in 2017. Payments for these purchases, made from a local bank account, were processed through JPMorgan Chase and HSBC’s Hang Seng Bank as intermediaries. Prigozhin had been under U.S. sanctions since 2016, and Meroe Gold was sanctioned in 2018 for being “owned or controlled by Prigozhin” and aiding in the exploitation of Sudan’s natural resources for personal gain.
The U.S. has accused the Wagner Group of committing serious human rights abuses in Africa, including mass executions, rape, and child abductions. In January 2023, the U.S. designated Wagner as a transnational criminal organization and imposed sanctions on associated individuals and companies.
The Financial Times, which first reported on the C4ADS findings, noted that neither JPMorgan nor HSBC was found to have knowingly processed transactions for Wagner’s front companies. JPMorgan stated it could not find details matching the transactions in question, while HSBC emphasized its strong commitment to combating financial crime but refrained from commenting on specific transactions.
Following Prigozhin’s death in August 2023, Russia’s Defense Ministry took over Wagner’s operations in Africa. At its peak in May 2022, the group was estimated to have around 5,000 mercenaries in Africa, many of whom were former Russian soldiers and convicts.
