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UK expands sanctions crackdown to payment routes tied to Russia-linked crypto

The National Crime Agency issued a nationwide alert for the A7 network and the UK is also proposing higher civil penalties for Office of Financial Sanctions Implementation breaches.

Reported · Written up by our desk · Regulation

Britain is widening its Russia sanctions crackdown beyond named targets to the payment routes used to move money through crypto-linked networks. On Aug. 31, the National Crime Agency issued its first nationwide industry alert on the A7 network, directing banks, payment providers and crypto firms to review counterparties, intermediary wallets and cross-border infrastructure tied to Russia-related transactions, according to CryptoSlate.

Authorities said the goal is to target the overlap between organized crime and sanctions evasion. The alert specifically pushes compliance teams beyond conventional name screening, flagging intermediary wallets, transaction hashes, decentralized exchanges, mixers, over-the-counter and peer-to-peer routes, services without know-your-customer controls, chain-hopping, VPN use and repeated infrastructure changes as potential signals that warrant scrutiny.

The A7 network is described as operating a cross-border settlement system that the UK says has used financial institutions in third countries, SWIFT and other payment infrastructure to help Russian clients move funds around sanctions. A7 says it processed more than $86 billion in its first year, though the figure is self-reported and not verified as illicit flow volume.

The sanctions drive is coming alongside a government plan to double the maximum civil penalty for Office of Financial Sanctions Implementation 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, and UK authorities warn that sanctions exposure may persist even after exchanges, wallets or payment services change names, jurisdictions or rails.

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