FinCEN Proposes Ban on Fund Transfers Tied to Russia-Linked A7 Network
FinCEN has issued a finding and proposed rule declaring that transactions involving any company outside the U.S. controlled by the A7 Network — a sanctions-evasion and money-laundering service with ties to Russia, Iran, and terrorist proxies — are a class of primary money laundering concern. The proposed rule would prohibit all covered financial institutions from transmitting funds in connection with that class of transactions. Crypto exchanges, payment processors, and MSBs that handle cross-border transfers must take immediate note, as violations could expose them to significant BSA and sanctions liability.
What to do
- Review and update transaction monitoring rules and sanctions screening lists to flag and block any transfers involving entities linked to the A7 Network; submit comments to FinCEN during the proposed rulemaking comment period and assess whether current counterparty due-diligence procedures cover non-U.S. shell companies that may be A7 sub-agents.
Who this affects
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Source
Read the official publicationThis radar entry is educational and does not constitute legal advice. Summaries are AI-assisted and grounded in the linked official source; always verify against the primary source and consult qualified legal counsel for jurisdiction-specific guidance.