US Sanctions Iranian Shadow Banking Network Linked to Israeli Citizen

The U.S. Treasury Department announced new sanctions on Thursday targeting the A7 network, a "shadow banking" system with ties to Russia that allegedly facilitated Iran's efforts to evade international sanctions. According to the Treasury, the network provided financial support to Iran's Islamic Revolutionary Guard Corps (IRGC) and its proxies, including Hamas. The A7 network has been designated as a transnational criminal organization, and its assets under U.S. jurisdiction have been frozen.

The network is reportedly headed by Ilan Shor, a Moldovan oligarch and politician who holds Israeli citizenship. Born in Tel Aviv in 1987, Shor has a prior conviction for fraud. The U.S. Treasury stated that the network utilizes shell companies in third countries and employs fraudulent trade documents to disguise illicit financial transfers as legitimate commercial transactions.

Shor previously served as the mayor of Orhei and as a member of Moldova's parliament. In 2023, he was sentenced in absentia to 15 years in prison for his involvement in a scheme to steal approximately $1 billion from Moldova's banking system. He fled to Israel in 2019 and later moved to Russia. The U.S. previously sanctioned Shor in October 2022, alleging he acted on behalf of the Kremlin to interfere in Moldovan elections, sow unrest, and undermine the country's EU accession efforts. Those sanctions also included his political party and his wife, Russian pop singer Sara Shor.

Britain also imposed sanctions on Shor in December 2022 for corruption and bribery, and the European Union followed suit in May 2023, citing his alleged illegal political financing and organization of violent protests aimed at destabilizing Moldova. An investigation by the U.S. Financial Crimes Enforcement Network (FinCEN) indicated that companies operating for the A7 network processed over $17 billion globally between January 2025 and June 2026. One company and its affiliate reportedly received nearly $140 million from entities involved in circumventing sanctions on Iran. This same company also conducted transactions with parties linked to Iran's "shadow fleet," used to transport and sell oil in violation of sanctions. Another firm transferred approximately $1.6 million to a company associated with sanction evasion and Iranian arms procurement efforts.

U.S. Treasury Secretary Scott M. Shipe warned, "If you help finance America's adversaries, you will lose access to the American financial system."