UK Targets $86B Russia-Linked Crypto Network as Sanctions Fines Could Double

UK issues first nationwide alert on A7 crypto network

Britain is expanding its Russia sanctions crackdown. On August 31, the National Crime Agency issued its first nationwide industry alert about a network called A7. The alert tells banks, payment providers, and crypto firms to examine transactions linked to Russia.

The A7 network is a cross-border settlement system. UK authorities say it has used financial institutions in third countries, SWIFT, and other international payment systems to help Russian clients move money around sanctions.

Key numbers and proposals

• The A7 network says it processed more than $86 billion in its first year, but that figure is self-reported and not verified as illicit.
• The UK government plans to double the maximum civil penalty for breaches involving measurable funds. It would rise to the greater of £2 million or 100% of the breach value, from £1 million or 50% today.
• The proposal still needs legislation and has no effective date.

What the National Crime Agency says

Rachael Herbert, Director of the National Economic Crime Centre at the National Crime Agency, said the agency is committed to targeting the link between organized crime and sanctions evasion. She said last year's Operation Destabilize targeted and disrupted a Russian-speaking money laundering network.

How the network evolved

The alert is a response to how sanctioned crypto infrastructure has changed. UK authorities previously said crypto liquidity moved from Garantex to Grinex, a Kyrgyzstan-registered exchange, through A7A5, a ruble-backed token, after Garantex faced enforcement action. By May 2025, Grinex had recorded more than $1.2 billion each in incoming and outgoing USDT transaction volume. The US Treasury separately said Garantex employees helped create Grinex infrastructure.

What firms must watch for

The alert pushes compliance teams beyond checking names on sanctions lists. Authorities highlighted these signals as needing scrutiny: intermediary wallets, transaction hashes, decentralized exchanges, mixers, over-the-counter and peer-to-peer routes, services without know-your-customer checks, chain-hopping, VPN use, and repeated infrastructure changes.

For UK firms, this means sanctions exposure may continue even after an exchange, wallet, or payment service changes names, jurisdictions, or payment rails.

What is confirmed and what is unclear

Confirmed: The National Crime Agency issued an alert on August 31 about the A7 network. The UK government has proposed increasing the maximum fine to the greater of £2 million or 100% of breach value. The A7 network's $86 billion figure is self-reported and not verified as illicit.

Unclear: The penalty change is only a proposal. It requires legislation and has no effective date. The Office of Financial Sanctions Implementation can still impose lower penalties.

Why it matters

This is a change in enforcement approach. Britain is asking financial and crypto firms to trace the route of Russia-linked money, not just check if a destination is on a sanctions list. If the fine proposal becomes law, firms could face penalties equal to the full value of an estimable breach.

What happens next

The proposed fine increase is still pending legislation. No effective date has been announced.

Sources

• CryptoSlate