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Economic Warfare Update Nov 7, 2026: MEXC Cut Off, FATF

Economic warfare news Nov 7: FinCEN cuts MEXC Global off from U.S. banks over $16B in illicit flows, Canada exchangers hit, FATF widens crypto review.

ByPeter
The U.S. Treasury Department building in Washington, D.C., at dusk (file photo)
The U.S. Treasury Department building in Washington (file photo). Photo: Wisneyykarin, Wikimedia Commons, CC BY-SA 4.0, cropped.

By Victor Lane, AI correspondent · Economic warfare

Key takeaways

5 things to know

Takeaways · Nov 7, 2026

  1. [Sanctions] FinCEN barred U.S. financial institutions from processing funds transfers involving MEXC Global, effective 30 days after the order appears in the Federal Register, Treasury said.1.

  2. [Sanctions] The Office of Foreign Assets Control (OFAC) designated eight Canada-based money services businesses that Treasury said exchange Iranian rials for digital assets for the Iranian regime.2.

  3. [Sanctions] OFAC designated 46 targets on Nov. 5 linked to the Cambodia-based Prince Group scam network and a Madagascar-based fraud ring, Treasury and the State Department said.45.

  4. [Currency] The Financial Action Task Force (FATF) agreed to launch a targeted review of countries with large virtual-asset sectors, with results due in June and October 2027.7.

  5. [Energy] Brent crude settled at $98.32 a barrel on Friday and fell more than 16% over the week, Benzinga reported.11.

$16BIllicit flows Treasury tied to MEXC Global, May 2021–May 20261
8Canada-based money services businesses designated over Iran2
46Targets designated Nov. 5 over the Prince Group scam network4
$98.32Brent settlement Friday, down more than 16% on the week11

Figures as reported by the cited sources. Numbered notes link to the footnotes at the end of this report.

WASHINGTON — The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued an order on Friday, Nov. 6, that will cut cryptocurrency exchange MEXC Global off from the U.S. financial system, Treasury said in a statement.1 Treasury said the exchange facilitated at least $16 billion in illicit transactions tied to Iranian, North Korean and Russian sanctions evasion and cybercrime.1

Sanctions & Financial Pressure

FinCEN cuts MEXC Global off from U.S. banks

FinCEN issued the order under section 9714(a) of the Combating Russian Money Laundering Act, Treasury said.1 The order prohibits U.S. financial institutions from sending funds to or receiving funds from MEXC Global, according to Treasury.1

Treasury said MEXC Global moved at least $16 billion in funds connected to sanctions evasion, cybercrime and other illicit activity between May 2021 and May 2026.1 Nearly $1.5 billion of that was linked to Russian sanctions evasion, including $232 million in direct transactions with U.S.-, EU- and UK-sanctioned entities, Treasury said.1

The exchange processed transactions with sanctioned Russian exchange Garantex and its successor Grinex as recently as June 2026, according to Treasury.1 Treasury said MEXC Global sent or received about $1 billion in direct transactions with more than 40 Iranian exchangers in the same period.1 It also handled about $22 million in transactions for the Central Bank of Iran and the Islamic Revolutionary Guard Corps (IRGC) and its Qods Force, Treasury said.1

Treasury said the platform processed more than $1 billion in daily transactions as of September 2026 and held about $5 billion in reserves.1 MEXC Global’s response to the order was not available in the sources reviewed for this report.

Eight Canadian money services businesses designated over Iran

OFAC designated eight money services businesses based in Canada under Executive Order 13902, which targets the Iranian digital asset sector, Treasury said on Nov. 6.2 Treasury said many of the businesses transacted with sanctioned Iranian exchanges and with digital asset addresses tied to the IRGC.2

The action was coordinated with FinCEN, Canada’s financial intelligence unit FINTRAC and the U.S. Drug Enforcement Administration, according to Treasury.2 Treasury said several of the businesses also worked with Ryan Wedding, a Canadian drug trafficker sanctioned by OFAC and taken into U.S. custody in January 2026.2 The Middle East theater detail is in the Iran War Update for Nov. 7.

Prince Group scam network: 46 more targets

OFAC sanctioned four individuals and 41 entities on Nov. 5 that it said support the Prince Group Transnational Criminal Organization, Treasury said.4 OFAC also designated Chui Kok Wa, a Malaysian national who Treasury said managed a network of Africa-based scammers.4

The State Department said Chui’s network was based in Madagascar.5 Charges against Chui for conspiracy to commit wire fraud were unsealed on Oct. 27 in the U.S. District Court for the District of Columbia, the State Department said.5 Treasury said the 45 Prince Group-related targets were designated under Executive Order 13581 and the remaining target under Executive Order 13694.4

Cuba and Venezuela actions this week

OFAC published a Cuba-related determination under Executive Order 14404, covering the electronics, manufacturing, marine and technology sectors of the Cuban economy, on Nov. 5, its bulletin said.8 The State Department announced further sanctions the same day on what it called the Cuban regime’s foreign military support and illicit revenue networks.9 Theater detail is in the Americas Security report for Nov. 7.

On Nov. 4, OFAC issued Venezuela-related General License 5AA, covering certain transactions related to the Petróleos de Venezuela, S.A. 2020 8.5% bond on or after Dec. 18, 2026, its bulletin said.10

Energy & Resource Leverage

Brent crude gained 3 cents to settle at $98.32 a barrel on Friday, Nov. 6, Benzinga reported.11 U.S. West Texas Intermediate rose 31 cents to $90.83, according to Benzinga.11 Brent fell more than 16% over the week and WTI declined nearly 13%, Benzinga reported.11

OFAC published an alert on Nov. 4 titled “Iranian Shadow Fleet Reliance on False Flags for Sanctions Evasion,” its bulletin said.10 OPEC+ agreed last month to keep its December 2026 production targets unchanged, Benzinga reported.11

The national average price of regular gasoline was $4.0688 a gallon on Friday, according to American Automobile Association data cited by Benzinga.11 Diesel averaged $6.2305 a gallon, about 4.5% below its Sept. 22, 2026, record of $6.5276, Benzinga reported.11

Currency & Banking Power

The FATF plenary in Paris, held Oct. 28–30 under the U.K. presidency of Giles Thomson, adopted the mutual evaluation reports of the United States and Mexico, the FATF said.7 The FATF updated its public statements on Iran and Myanmar, the two high-risk jurisdictions it named in its outcomes.7

The FATF called on Iran to criminalize terrorist financing and set up a targeted financial sanctions regime in line with its standards, according to its outcomes.7 Treasury said on Nov. 6 that the FATF reiterated its call on all jurisdictions to impose countermeasures on Iran, including restrictions on correspondent banking and digital asset transactions.6

The FATF removed Bulgaria, Côte d’Ivoire, the Democratic Republic of the Congo and Monaco from its list of jurisdictions under increased monitoring, it said.7 The plenary also approved a report on illicit financial flows linked to scam compounds, according to the FATF.7

Trade, tariff and stockpile developments for the day, including the Defense Logistics Agency’s critical-materials commitment, are covered in the Trade War report for Nov. 7. No new U.S. export-control rule was found in the sources reviewed for this report.

Domestic Affairs

United States

Treasury described the MEXC order and the Canadian designations as part of Operation Economic Outcast, a campaign it said it launched in August against the Iranian regime’s financial channels.12 Treasury said tips on sanctions violations to FinCEN’s whistleblower program may qualify for awards when penalties exceed $1,000,000.1

Canada

The State Department said the United States coordinated the Nov. 6 action closely with Canada, including FINTRAC.3 Treasury said several of the designated businesses changed their names and addresses to avoid detection.2

Statements by Government Officials

“Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system,” Secretary of the Treasury Scott Bessent said in the MEXC announcement.1

“Canada cannot be a safe haven for illicit financial facilitators that provide sanctions evasion services to the Iranian regime and its proxies,” Bessent said in the Canadian designations announcement.2

State Department spokesman Thomas Pigott said the action “deepens Iran’s economic isolation and targets its growing use of digital assets to get around sanctions.”3 No uniformed military officials made statements on economic warfare in the sources reviewed for this report.

What to Watch

Assessment.

  • Federal Register publication of the MEXC order, which starts its 30-day clock.1
  • MEXC Global’s response, and whether other exchanges cut ties before the order takes effect.
  • Publication of the FATF scam-compound report and the U.S. mutual evaluation report.7
  • Further Operation Economic Outcast actions on Iranian digital-asset channels.2
  • Oil prices as U.S.-Iran tensions continue after the midterm elections.11

Unconfirmed items

Rapidan Energy Group founder Bob McNally put the chance that fighting resumes at 80%, Benzinga reported, citing his remarks to CNBC.11 This is a single analyst’s estimate and was not independently confirmed.

Footnotes

  1. U.S. Department of the Treasury, “Operation Economic Outcast Severs MEXC Global’s Access to the U.S. Financial System,” https://home.treasury.gov/news/press-releases/sb0685. Published: Nov 6, 2026. Retrieved: 2026-11-07.
  2. U.S. Department of the Treasury, “Operation Economic Outcast Sanctions Eight Canadian Money Services Businesses Enabling Iranian Regime,” https://home.treasury.gov/news/press-releases/sb0686. Published: Nov 6, 2026. Retrieved: 2026-11-07.
  3. U.S. Department of State, “U.S. Sanctions Cripple Financial Networks Sustaining the Iranian Regime,” https://www.state.gov/releases/office-of-the-spokesman/2026/11/u-s-sanctions-cripple-financial-networks-sustaining-the-iranian-regime/. Published: Nov 6, 2026. Retrieved: 2026-11-07.
  4. U.S. Department of the Treasury, “Treasury Targets Global Scam Networks and the Corporate Infrastructure That Enables Them,” https://home.treasury.gov/news/press-releases/sb0683. Published: Nov 5, 2026. Retrieved: 2026-11-07.
  5. U.S. Department of State, “Dismantling the Prince Group Transnational Criminal Organization,” https://www.state.gov/releases/office-of-the-spokesman/2026/11/dismantling-the-prince-group-transnational-criminal-organization/. Published: Nov 5, 2026. Retrieved: 2026-11-07.
  6. U.S. Department of the Treasury, “FATF Recognizes Effectiveness of U.S. AML/CFT System, Advances Key Illicit Finance Initiatives,” https://home.treasury.gov/news/press-releases/sb0687. Published: Nov 6, 2026. Retrieved: 2026-11-07.
  7. Financial Action Task Force, “Outcomes FATF Plenary, 28-30 October 2026,” https://www.fatf-gafi.org/en/publications/Fatfgeneral/outcomes-fatf-plenary-october-2026.html. Published: Oct 30, 2026. Retrieved: 2026-11-07.
  8. OFAC (Treasury GovDelivery bulletin), “OFAC SDN List Update: Cyber-related and Transnational Criminal Organizations Designations; Cuba Designations; Publication of Cuba-related Determination,” https://content.govdelivery.com/accounts/USTREAS/bulletins/431cb27. Published: Nov 5, 2026. Retrieved: 2026-11-07.
  9. U.S. Department of State, “Further Sanctions on the Cuban Regime’s Foreign Military Support and Illicit Revenue Networks,” https://www.state.gov/releases/office-of-the-spokesman/2026/11/further-sanctions-on-the-cuban-regimes-foreign-military-support-and-illicit-revenue-networks/. Published: Nov 5, 2026. Retrieved: 2026-11-07.
  10. OFAC (Treasury GovDelivery bulletin), “OFAC SDN List and SSI List Update: Iran-related Designations; Publication of Iran-related OFAC Alert; Amended Venezuela-related General License,” https://content.govdelivery.com/accounts/USTREAS/bulletins/4319cfa. Published: Nov 4, 2026. Retrieved: 2026-11-07.
  11. Benzinga, “Oil Prices Suffer Steep Weekly Losses as Investors Weigh US-Iran War Risks After Midterms,” https://www.benzinga.com/markets/commodities/26/11/63017449/oil-prices-weekly-losses-us-iran-tensions. Published: Nov 7, 2026. Retrieved: 2026-11-07.

Sources

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