Original sourceFintelegram
Summary
The US Treasury on October 1, 2026 stepped up enforcement against the A7 shadow banking network. OFAC designated the A7 network as a significant transnational criminal organization, freezing its property within US jurisdiction; FinCEN issued an alert and proposed a rule to bar US financial institut…
Key points
- It reveals how cross-border sanctions evasion actually relies on stablecoins and shadow banking structures—a concrete risk checklist for compliance and risk teams.
- Enforcement explicitly brings stablecoin channels into sanctions and anti-money-laundering frameworks, requiring banks and crypto firms to adjust transaction monitoring red flags.
- Banks, e-money institutions, payment processors and crypto companies must strengthen screening of complex cross-border transactions or face enforcement risk.
- OFAC acted against A7 and related entities in August 2025, and the EU and UK followed in 2025–2026.
Editorial note
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