World · East Asia & Pacific · 22 hrs ago
Chinese regional bank linked to Russian sanctions evasion through US banking system
Zhejiang Chouzhou Commercial Bank is a regional bank based in Yiwu, China.
It provides correspondent banking, a common service that lets smaller banks make international payments through accounts at larger banks.
Financial records show that more than 50 of Chouzhou’s business customers sold restricted electronics, industrial chemicals and other goods or services to Russia in the first four months of 2025.
In one example, a Russian company bought $73,000 in parts for electronic warfare systems from a Hong Kong distributor.
First Abu Dhabi Bank sent the payment to Chouzhou’s account at Bank of America, which received transfer instructions but not details of the goods or buyer.
A company in Kyrgyzstan working for Moscow-based financial firm A7 also made more than $10 million in purchases of restricted goods through a bank with an account at Chouzhou.
Bank of America closed its Chouzhou account in June 2025, but Chouzhou later opened two dollar accounts at Citibank and Standard Chartered that the source says remain active.
The Zhejiang Chouzhou Commercial Bank in Yiwu, China, was linked to Russian companies using the US banking system to evade Western sanctions, according to a New York Times analysis of financial records.
More than 50 of the bank’s corporate clients sold restricted electronics, industrial chemicals and other goods or services to Russia between January and April 2025.
The records described a January 2025 transaction in which $73,000 for electronic warfare system components was routed through Chouzhou’s account at Bank of America.
Bank of America ended its relationship with Chouzhou in June 2025, and Chouzhou later opened two dollar accounts at Citibank and Standard Chartered, according to CNBC Indonesia.
Chouzhou had stopped transacting directly with Russian and Belarusian banks in early 2024 but continued serving clients and banks in countries considered at risk of sanctions evasion.
- Who
- Zhejiang Chouzhou Commercial Bank and Russian companies and intermediaries using its banking services.
- What
- The bank’s correspondent banking services were linked to transactions that helped Russian companies access the US financial system and evade Western sanctions.
- When
- The reported transactions include activity from January to April 2025. Bank of America ended its relationship with Chouzhou in June 2025.
- Where
- The bank is based in Yiwu, Zhejiang province, China; transactions passed through its account at Bank of America in the United States.
- Why
- Correspondent banking allowed banks to make international payments through Chouzhou without directly accessing major US banks, while obscuring details about some purchases and buyers.
This story does not have two clearly opposing sides.
No direct quotes in the coverage so far.
Chouzhou stopped transacting directly with Russian and Belarusian banks.
A Russian company bought $73,000 in components for electronic warfare systems, with payment routed to Chouzhou’s Bank of America account.
More than 50 Chouzhou corporate clients sold restricted goods or services to Russia.
Bank of America ended its relationship with Chouzhou and closed account 0252.
Chouzhou opened two dollar accounts at Citibank and Standard Chartered, which CNBC Indonesia reported remained active.
- Bank
- Zhejiang Chouzhou Commercial Bank
- Base
- Yiwu, Zhejiang province, China
- Restricted-goods clients
- More than 50 between January and April 2025
- Electronic warfare components
- $73,000 purchase in January 2025
- Bank of America account
- Account ending in 0252
- Bank of America relationship
- Ended in June 2025
Sources
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