The U.S. Treasury Department is stepping up its efforts to expose a money-laundering network known as A7, which is helping Russia and Iran move illicit funds through the global financial system. The Treasury is providing banks with a list of red flags to identify and block transactions linked to A7's so-called "Sub-Agents," which are registered in various countries but controlled from Moscow. These front companies have processed over $17 billion in transactions over an 18-month period ending in June.
Treasury has identified six firms as Sub-Agents and plans to add more through a secure private channel with the financial industry. Banks are instructed to reject transfers involving these Sub-Agents, block any transactions for A7, and report suspected Sub-Agents based on provided alerts. FinCEN, Treasury's Financial Crimes Enforcement Network, warns banks to watch for shared digital infrastructure used by A7, including VPNs with IP addresses in Dubai, Hong Kong, or Kyrgyzstan, which obscure the network's Russian connections.
Kharon's research has uncovered additional companies fitting Treasury's profile for A7 Sub-Agents, including UAE-registered Galadriel Trading and Sigizmund, which used the same IP address as the A7A5 cryptocurrency. Other companies like Silk Road Kommoditiz and Dynamix Energy LLC-FZ also exhibited ties to A7. The network relies on trusted intermediary entities, including digital asset brokers in jurisdictions of concern, to maintain liquidity and facilitate transactions.
In Kyrgyzstan's capital, a cluster of companies linked to A7 has been identified, including Tsunami Payments LLC, which services the A7A5 digital wallet. The U.K. recently sanctioned Tsunami, and corporate records show that its former manager now manages three new Kyrgyz companies, all sharing addresses in the same Bishkek office tower. These companies are connected to the KGST stablecoin, which can be swapped for Tether, granting access to Western financial channels. Binance lists KGST with a current market capitalization of just over $9 million.