NCA Alert on A7 Network and Proposed OFSI Penalty Increase
UK enforcement widens to Russia-linked payment rails with NCA directing scrutiny of A7 infrastructure and a proposed 100% breach-value penalty ceiling.
The National Crime Agency issued a nationwide industry alert on 31 August directing banks, payment providers and crypto firms to examine counterparties and intermediary wallets tied to the A7 network.
Rachael Herbert, Director of the National Economic Crime Centre at the NCA, stated the agency's commitment to targeting the nexus between organized crime and sanctions evasion.
The government proposes raising the Office of Financial Sanctions Implementation maximum civil penalty to the greater of £2 million or 100 percent of breach value. The change requires legislation and has no effective date; OFSI retains discretion to impose lower penalties.
A7 self-reports processing more than $86 billion in its first year, though the figure remains unverified. UK authorities previously noted flows from Garantex to Grinex via the A7A5 token after earlier enforcement actions. No specific transaction volumes or data have been disclosed by authorities.