US toughens sanctions against sanctions-busting payments operator

In recent days, the US Treasury has designated A7, a prominent payments system facilitating transactions for Russia and Iran to circumvent sanctions, as a "transnational criminal organization". This heightened sanction level likely results from Iran's Islamic Revolutionary Guard Corps' utilization of the platform. A7 is the largest organization aiding Russian entities in evading international sanctions.

Established by state-owned Promsvyazbank, which specializes in financing and serving the Russian defense industry, and Moldovan businessman Ilan Shor, a professional money launderer and a key player in a scheme that siphoned $20 billion from Russia in the 2010s, A7 has become a critical artery for Russia's foreign trade, with nearly 12% of the country's trade reportedly moving through its channels in 2025.

Despite being under US sanctions since August 2025, A7's operations are primarily routed through foreign entities. The Federal Reserve's Currency Enforcement Network (FinCEN) reveals that A7 maintains accounts with approximately 435 banks across 83 countries. Since the beginning of 2025 alone, the organization has processed over $17 billion in dollar-denominated transactions.

FinCEN will not disclose a comprehensive list of these banks but will share the information with US financial institutions through a secure channel. Furthermore, FinCEN has proposed a ban on US financial institutions processing any transfers involving subagents of A7's network. This network comprises shell companies in the UAE, Hong Kong, Turkey, and other countries used by A7 to conceal transactions related to sanctioned sectors and individuals as regular commercial activity.

For instance, a scheme was reported where thermal imaging sights were invoiced as "tempered glass" to disguise their true purpose, and payments were made on behalf of Russian clients.

A7's constant corporate renewal is a defining feature of its operations. The company maintains a team solely dedicated to creating new shell companies when existing ones are identified and dismantled by US authorities. As the cat-and-mouse game between US financial regulators and Russian sanctions-busting experts persists, it underscores the persistent challenge of combating professional money launderers on a global scale.