The correspondent banking system has enabled global finance but also sanctions evasion. Zhejiang Chouzhou Commercial Bank, a regional lender in Yiwu, provided correspondent services that allowed Russian front companies to access Wall Street through accounts like Bank of America’s ending in 0252. This pooled account held funds from countless customers, including entities tied to sanctions-busting networks.
Since Russia’s invasion of Ukraine, exploiting weak links in correspondent banking has been key to sidestepping U.S. restrictions. A New York Times analysis of thousands of financial documents found over 50 companies selling restricted goods to Russia in early 2025 held accounts at Chouzhou. Many documents came from A7, a Moscow-based financial firm whose hacked records showed repeated use of Chouzhou for illicit transactions.
One Kyrgyzstan shell company linked to A7 made over $10 million in restricted purchases via Chouzhou’s correspondent network. In January 2025, a Russian firm bought $73,000 of electronic warfare components through this chain, with funds routed via First Abu Dhabi Bank to Chouzhou’s Bank of America account. Bank of America terminated the relationship in June 2025 without explanation, but Chouzhou continues dollar access through Citibank, JPMorgan Chase, and Standard Chartered for banks with ties to Russia.
Source: New York Times Top Stories · Summarized by HeadlinesBriefing