The U.S. Department of the Treasury sanctioned the A7 Network on Oct. 1, designating the Russia-linked entity as a significant transnational criminal organization. The action targets a shadow banking network accused of helping Iran evade sanctions and facilitating illicit finance through a global web of Sub-Agents.
Simultaneously, Treasury's Financial Crimes Enforcement Network (FinCEN) proposed a rule to prohibit U.S. financial institutions from processing funds related to transactions involving the A7 Network's Sub-Agents. FinCEN also issued an alert to assist financial institutions in detecting and reporting suspicious activity connected to the network.
Secretary of the Treasury Scott Bessent said the Treasury is dismantling financial infrastructure that enables adversaries to evade sanctions and move illicit funds. The action against A7 continues efforts to isolate Iran and its financial enablers, Bessent said.
The A7 Network was established in 2024 by Ilan Mironovich Shor, a sanctioned and convicted fraudster. It was backed by Promsvyazbank (PSB) and VEB.RF, both sanctioned Russian state entities. The network created a global web of Sub-Agents—companies designed to disguise payments linked to sanctioned sectors and individuals as ordinary commercial activity.
These Sub-Agents held local bank accounts globally and paid international suppliers on behalf of A7's clients. The network aimed to reduce reliance on Western correspondent banks. A7 reportedly had access to accounts at major financial institutions including JPMorgan Chase and DBS; First Abu Dhabi Bank confirmed it had identified and closed all A7-linked accounts.
The network was leveraged by Iran, including its Islamic new Guard Corps (IRGC) and the Central Bank of Iran, for sanctions evasion. It also supported Iran-backed terrorist organizations and cybercriminals, including those involved in ransomware and procurement activities. The action builds on earlier designations from Aug. 14, 2025, which targeted A7 Network entities including A7 LLC and Old Vector LLC.
By January 2026, the A7 Network claimed to process more than 2,000 transactions daily, with a total transaction volume exceeding 7.5 trillion rubles, equivalent to $91.5 billion. This represented approximately 13 percent of the Russian Federation's foreign trade transactions in 2025. FinCEN's investigation identified that the network's Sub-Agents processed more than $17 billion globally between January 2025 and June 2026.
The A7 Network is directly linked to Nobitex, which operates as Iran's largest digital asset exchange. The network also facilitated transactions connected to North Korean hacks of cryptocurrency exchanges.
The proposed rulemaking is authorized under section 9714(a) of the Combating Russian Money Laundering Act. Its scope extends beyond Russian sanctions evasion, as the same Sub-Agents enabling Russian illicit finance also created pathways for other actors, including those involved in state-sponsored terrorism and cybercrime.
Liquidity for the A7 Network was historically built through entities outside Russia, including the Kyrgyz company TKKR, which was liquidated in February 2026. This mechanism allowed the network to move value across borders while attempting to circumvent traditional financial controls.
The public comment period for FinCEN's proposed rule will remain open for 30 days following its publication in the Federal Register.
