US Treasury Sanctions Russia-Linked A7 Network That Processed More Than $17 Billion
Summary
- The U.S. Treasury said it had sanctioned the Russia-linked A7 Network and classified it as a significant transnational criminal organization.
- FinCEN said it had proposed a rule to restrict fund transfers involving sub-agents of the A7 Network, which processed more than $17 billion from January 2025 through June 2026.
- The Treasury said cryptocurrency infrastructure and the ruble-pegged token 'A7A5' were used for cross-border fund transfers and sanctions evasion, prompting a risk alert for financial institutions.
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The U.S. Treasury Department imposed sanctions on the Russia-linked shadow finance network A7, saying it was also used to help Iran evade sanctions and move illicit funds.
On October 1, the Treasury said the Office of Foreign Assets Control designated the A7 network as a significant transnational criminal organization. The Financial Crimes Enforcement Network, or FinCEN, also proposed a rule to restrict fund transfers involving the network's sub-agents.
The Treasury said the A7 network used companies in third countries and international payment systems to circumvent sanctions. A FinCEN investigation found that the network's sub-agents processed more than $17 billion worldwide from January 2025 through June 2026.
The network was also used to move funds tied to the Central Bank of Iran, the Islamic Revolutionary Guard Corps, and Iran-linked groups. The Treasury said some sub-units were involved in transactions related to Iranian oil sales and weapons procurement.
Cryptocurrency infrastructure was also used. The A7 network includes A7A5, a ruble-pegged token issued by Old Vector, which U.S. authorities say was used for cross-border fund transfers and sanctions evasion.
Alongside the action, the Treasury issued a risk alert to financial institutions to help identify suspicious transactions tied to the A7 network.
