U.S. hits Russia’s “A7” shadow banking network that helps Iran evade sanctions

The U.S. Treasury Department has announced new sanctions on Russia’s “A7” network, a shadow banking system used by Iran to evade sanctions, as Al Jazeera reports. The measure is part of Washington’s “Economic Outcast” operation, aimed at cutting Tehran’s “financial lifelines.”

In a statement published on its website, the Office of Foreign Assets Control (OFAC) designated the A7 network a “significant transnational criminal organisation.” According to the Treasury, the network “was created and is supported by persons sanctioned by the U.S. for the purpose of evading sanctions” and developed a “global network” of companies to disguise payments linked to sanctioned sectors and persons as ordinary commercial activity.

Together with the sanctions, the Financial Crimes Enforcement Network (FinCEN) proposed a rule banning transactions with companies linked to the A7 network, which will help financial institutions detect suspicious activities.

This is the latest blow in the Trump administration’s campaign to economically isolate Iran, following the wave of sanctions announced in recent weeks on Iranian industrial and commercial sectors. Tehran has long relied on such parallel networks to finance imports and bypass international banking restrictions.