meta_id 3546768

On October 1, 2026, the U.S. Department of the Treasury announced unprecedented action against the A7 Network, a shadow banking network with ties to Russia used by Iran to evade sanctions. The Financial Crimes Enforcement Network (FinCEN) proposed a rule prohibiting fund transmittals involving the A7 Network's Sub-Agents and issued an alert to help financial institutions detect suspicious activity. The Office of Foreign Assets Control (OFAC) designated the A7 Network as a significant transnational criminal organization. The A7 Network operates as a parallel financial system designed to disguise sanctioned or illicit payments as ordinary commercial activity. According to the Treasury, the network processes more than 2,000 transactions daily, with transaction volumes exceeding 7.5 trillion rubles (approximately $91.5 billion), representing roughly 13 percent of Russia's 2025 foreign trade transactions. FinCEN identified that A7 Network Sub-Agents processed more than $17 billion between January 2025 and June 2026. The network facilitates transactions for Iran's Islamic Revolutionary Guard Corps, Iranian proxies including Hamas, and other illicit actors. Specific examples include transactions involving Iran's shadow fleet and weapons procurement efforts, with one Sub-Agent receiving nearly $140 million from Iranian sanctions evasion entities. The network, led by sanctioned criminal Ilan Mironovich Shor, uses falsified trade documents and misleading goods descriptions to obscure illicit transactions. OFAC's designation blocks all A7 Network property and interests in the United States and prohibits U.S. persons from engaging in transactions involving the network or its Sub-Agents. The notice of proposed rulemaking, issued under the Combating Russian Money Laundering Act, opens a 30-day public comment period following Federal Register publication. FinCEN's alert provides red flags for identifying A7 Network activity, and financial institutions must report suspicious transactions to OFAC.