UK Cracks Down on $86 Billion Russia-Linked Crypto Pipeline

The UK is stepping up its efforts to combat Russia-linked cryptocurrency activity by targeting a network that processed over $86 billion in transactions last year. The National Crime Agency issued an industry alert on August 31, directing banks, payment providers, and crypto firms to scrutinize counterparties and intermediary wallets linked to Russia-related transactions.

The A7 network, which operates a cross-border settlement system, has been accused of using international payment infrastructure to help Russian clients evade sanctions. The UK authorities claim that the network's clients have used financial institutions in third countries, SWIFT, and other international payment systems to move funds around sanctions.

Rachael Herbert, Director of the National Economic Crime Centre (NECC) at the National Crime Agency, said: 'The National Crime Agency and the National Economic Crime Centre are committed to targeting the nexus between organized crime and sanctions evasion.'

The UK government is also proposing to double the maximum civil penalty for breaches involving measurable funds or economic resources. The proposed ceiling would rise to the greater of £2 million or 100% of the breach value, from £1 million or 50% today.