The Financial Crimes Enforcement Network proposed a rule that would prohibit transmittals of funds regarding transactions involving the A7 Network, a shadow banking network with ties to Russia used by the Iranian regime to evade sanctions.
Rule Details: In the proposed rule, FinCEN noted:
- The A7 Network uses digital assets, including a ruble-backed stablecoin, to transfer value to actors outside the formal financial system.
- More than 180 entities processed A7A5 transactions worth at least $179 billion between February 2025 and June 2026.
- Iranian actors, North Korea, Iran-backed terrorist organizations, cybercriminals, and ransomware actors are using the A7 Network.
More Actions: FinCEN also issued an alert to help financial institutions detect and report suspicious activity related to the A7 Network, while the Office of Foreign Assets Control sanctioned A7 as a significant transnational criminal organization.
ICBA View: In a letter to the Federal Reserve Bank of Kansas City regarding Kraken Financial’s access to Fed payment services, ICBA in June noted that A7 has relied on a stablecoin to facilitate much of its illicit activity and cited recent actions by the United Kingdom to sanction A7.
More ICBA Advocacy:
- When the Treasury and Justice departments last year announced actions against criminal networks responsible for scams and money laundering, ICBA was the only voice of support.
- ICBA in May urged the OCC to strengthen its proposed GENIUS Act rules to protect against stablecoin risks.
- ICBA in 2025 expressed strong support for FinCEN’s proposed rule to designate the Huione Group as a primary money laundering concern but said more needs to be done to curtail the rapid growth of crypto scams.