U.S. Sanctions A7 Network Over Iran Sanctions Evasion Allegations
U.S. Treasury targets A7 network for alleged role in Iran sanctions evasion, citing illicit financial activities.
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The U.S. Treasury Department has imposed sanctions on the Russia-linked A7 shadow banking network, accusing it of facilitating Iran’s sanctions evasion through offshore companies and falsified trade documents. The designation is part of Operation Economic Outcast, aimed at dismantling financial infrastructure that enables adversaries to move illicit funds and undermine the global financial system.
Alleged Role in Iran Sanctions Evasion
The Treasury Department accused A7 of working with the Islamic Revolutionary Guard Corps and other sanctioned actors to transfer money across borders. Secretary of the Treasury Scott Bessent stated, ‘Treasury is dismantling the financial infrastructure that allows Iran and other adversaries to evade sanctions, move illicit funds, and undermine the integrity of the global financial system.’ The sanctions also target A7’s intermediaries, which the Treasury claims processed over $17 billion in transactions between January 2025 and June 2026.
A7 Denies Allegations
A7 denied the accusations in an Oct. 2 statement, asserting that it has no ties to Iran or terrorist organizations. The company described its business as lawful imports and exports of consumer goods and commodities, stating that payment services continued without interruption.
Intermediaries and Illicit Funds
FinCEN highlighted the role of A7’s intermediaries, which act as shell companies to obscure the true origin of funds. These intermediaries are said to have processed over $17 billion in transactions, with some $61 million linked to Russian trade-based money laundering and energy-sector procurement. Treasury cited several transactions involving entities connected to Iran’s oil-shipping ‘shadow fleet’ and weapons procurement.
Expanding Sanctions and Restrictions
The action expands earlier sanctions, including the designation of A7 LLC and subsidiaries, which were linked to the sanctioned cryptocurrency exchange Garantex. The Treasury also targeted Old Vector, a Kyrgyzstan-based issuer of A7A5, a ruble-backed digital token used by Garantex customers to regain access to funds after a law-enforcement disruption.
Restrictions on Financial Transactions
Under the new designation, A7 network property in the United States or held by U.S. persons is blocked and must be reported to OFAC. Financial institutions are prohibited from processing certain transfers involving identified intermediaries, with the full list of entities kept confidential to prevent A7 from creating new intermediaries to sidestep restrictions.
Source: PJ Media
