U.S. Targets Russia-Linked Shadow Bank Used by Iran to Evade Sanctions

Under its new “Operation Economic Outcast,” Treasury’s FinCEN proposed blocking U.S. financial institutions from certain fund transfers involving A7 Network sub-agents, while OFAC designated the broader A7 Network as a significant transnational criminal organization.

According to the Treasury action, A7 uses third-country companies, falsified trade documents and misleading descriptions of goods to make sanctioned payments resemble ordinary commercial transactions. Treasury says Iran’s central bank, the Islamic Revolutionary Guard Corps and Iran-backed groups have used those channels.

A7’s Sub-Agents Processed More Than $17 Billion

FinCEN found that A7 sub-agents processed more than $17 billion between January 2025 and June 2026.

The network itself claims an even larger footprint. As of January, A7 said it was processing more than 2,000 transactions per day, with total transaction volume exceeding 7.5 trillion rubles, or about $91.5 billion — equivalent to roughly 13% of Russia’s 2025 foreign trade, according to Treasury.

The latest action expands earlier pressure on the network. Coinpaper has tracked how its ruble-backed A7A5 stablecoin became a major cross-border settlement instrument even as U.S. and European sanctions targeted its infrastructure.

Iran Used the Network for Oil and Weapons Payments

Treasury says one A7 sub-agent dealt directly with companies involved in Iran’s “shadow fleet,” the network of tankers and front companies used to move sanctioned oil. That sub-agent and a sister company allegedly received nearly $140 million from entities involved in Iranian sanctions evasion.

Another transferred roughly $1.6 million to a company linked to sanctions evasion and weapons procurement.

The crypto connection also runs deeper. Treasury says A7 has ties to Nobitex, Iran’s largest digital-asset exchange, which OFAC sanctioned in June. A7A5 itself is a ruble-backed token created by sanctioned Old Vector LLC and was designed, according to Treasury, to facilitate international transactions outside conventional financial rails.

Earlier British sanctions also targeted entities connected to the A7 network, illustrating how Western enforcement has increasingly shifted from individual exchanges toward the infrastructure connecting crypto, trade companies and conventional bank accounts.