US targets Iran’s ‘shadow bank’ as multibillion-dollar network linked to IRGC, oil sales and weapons procurement

The United States has escalated its campaign against financial channels used to evade sanctions on Iran, announcing new action against the A7 Network, which the US Treasury describes as a Russia-linked “shadow banking” network used by Tehran to move money through the international financial system.

The US Department of the Treasury said the Office of Foreign Assets Control sanctioned the A7 Network as a significant transnational criminal organization. FinCEN also proposed a rule to prohibit fund transfers involving A7 sub-agents and issued an alert to help financial institutions identify suspicious activity connected to the network.

IRGC and Iran’s central bank

According to the Treasury, companies and agents within the network created pathways used by the Central Bank of Iran, the Islamic Revolutionary Guard Corps and Iran-backed organizations to move funds through the international financial system. FinCEN found that A7 sub-agents processed more than $17 billion globally between January 2025 and June 2026.

Oil sales and weapons procurement

The Treasury also linked the network to Iranian oil sales and weapons procurement. It said one A7 sub-agent transacted directly with entities involved in Iran’s “shadow fleet,” while that agent and a sister company received nearly $140 million from entities involved in Iranian sanctions evasion.

A separate A7 sub-agent transferred about $1.6 million to a company linked by US authorities to Iranian sanctions evasion and weapons procurement efforts.

Broader pressure campaign

The measure is part of Washington’s “Operation Economic Outcast,” which targets financial and commercial networks that the United States says allow Iran to sustain economic and military activity despite sanctions. The Treasury announced separate measures the same day targeting Iran’s automotive and rail sectors and international industrial and trading networks.