Global financial institutions, including Standard Chartered (OTC: SCBFY) and Citigroup Inc. (NYSE: C), processed over $6.9 billion from A7, a Russia-backed payment network designed to bypass Western sanctions. The funds were laundered through the international banking system using forged documents and front companies, according to a Financial Times report citing internal files.

A7, established in late 2024, facilitated transactions for Russian businesses and military entities. The network utilized a broad forgery operation to create counterfeit invoices, allowing it to gain access to the SWIFT system. Some payments were linked to sensitive war-related products, including military tools and security services purchased from Russia.

Distribution of processed funds

The report details specific flows of funds through various global banking hubs between late 2024 and August 2025. Standard Chartered accounts in Hong Kong received the largest disclosed portion among named entities, while significant volumes also moved through UAE and European institutions.

A7 reportedly created accounts at First Abu Dhabi Bank for 17 separate entities, which sent over $1.8 billion in payments. The firm also established accounts at JPMorgan Chase & Co. (NYSE: JPM) and DBS Group Holdings (OTC: DBSDY). Standard Chartered declined to comment, while Citi, DBS, JPMorgan Chase, and Deutsche Bank did not immediately respond to requests for comment.

Political backlash and enforcement gaps

Senator Elizabeth Warren criticized the Trump administration for halting regular sanctions against evaders who support Russia’s war efforts. She stated that it has been over a year and a half since such enforcement actions ceased, despite calls to expose entities behind the Kremlin-backed A7 network. The report highlights a potential gap in regulatory oversight as these networks exploit loopholes in global compliance systems.

In response to recent findings, the Treasury Department levied new sanctions against VTB Bank Public Joint Stock Company, accusing it of aiding Iran by establishing correspondent relationships with sanctioned Iranian banks. This action follows warnings from Treasury Secretary Scott Bessent regarding further sanctions on large banks aiding Iran.

BRICS summit context

The revelations coincide with Russian President Vladimir Putin’s remarks at the BRICS summit in New Delhi, where he noted that Russia has faced more than 30,000 sanctions. Putin argued that economic pressure has become a tool of geopolitical competition and stated that Russia responded by strengthening ties with reliable partners. He claimed Russia’s economic growth over the past three years exceeded the global average.

An executive of the BRICS Business Council indicated that a unified BRICS payment network could help expand local-currency trade and reduce reliance on Western financial channels. However, building trust and establishing common rules remain key challenges for the bloc.

Market reaction

Shares of Citigroup closed 2.49% higher at $135.05 on Monday, dipping about 0.06% in after-hours trading. JPMorgan Chase stock climbed 0.68% to close at $352.04, with shares declining around 0.02% after-hours. The market reaction suggests investors are currently weighing the reputational risks against the operational scale of these institutions.