UK targets self-reported $86 billion Russia-linked crypto pipeline, plans to double fines

Britain is widening its Russia sanctions crackdown to payment routes used by the A7 network. On Aug. 31, the National Crime Agency issued its first nationwide industry alert on A7. The alert directs banks, payment providers and crypto firms to examine counterparties, intermediary wallets and cross-border infrastructure linked to Russia-related transactions. A7 says it processed more than $86 billion in its first year. The figure is self-reported and does not verify the amount of illicit flows. The government plans to raise the maximum civil penalty for breaches involving measurable funds or economic resources. The proposed ceiling would be the greater of £2 million or 100% of the breach value. The current ceiling is £1 million or 50% of the breach value. The National Crime Agency and the National Economic Crime Centre are targeting links between organized crime and sanctions evasion, Rachael Herbert said. Herbert said Operation Destabilize targeted and disrupted a major Russian-speaking professional money laundering network last year. UK authorities say A7 has used financial institutions in third countries, SWIFT and other international payment infrastructure to help Russian clients move funds around sanctions. The alert identifies intermediary wallets, transaction hashes, decentralized exchanges, mixers, over-the-counter routes and peer-to-peer routes as signals for further scrutiny. It also identifies services without know-your-customer controls, chain-hopping, VPN use and repeated infrastructure changes. UK authorities previously assessed that crypto liquidity moved from Garantex to Kyrgyzstan-registered Grinex through A7A5 after Garantex faced enforcement action. Grinex recorded more than $1.2 billion in incoming USDT transaction volume by May 2025. Grinex also recorded more than $1.2 billion in outgoing USDT transaction volume by May 2025. The US Treasury said Garantex employees helped create Grinex infrastructure. The US Treasury also said users regained account access or received equivalent value through A7A5. The proposed penalty change requires legislation and has no effective date. OFSI would retain discretion to impose penalties below the statutory maximum.