8-K

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT


Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 31, 2006
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                      Transnational Financial Network, Inc.
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        (Exact name of small business issuer as specified in its charter)


California                         1-14219                         94-2964195
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(State or other jurisdiction       (Commission File          (I.R.S.Employer
of incorporation)                     Number)                Identification No.)

401 Taraval Street, San Francisco, CA                          94116
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(Address of principal executive offices)                    (Zip Code)


(Registrant's telephone number, including area code: (415) 242-7800

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(Former name, former address and former fiscal year, if changed since last
report)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))





Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing.

On August 3, 2006, the registrant issued a press release announcing that because
it shareholders' equity was less than $2,000,000 as the end of its last fiscal
year and losses from continuing operations and/or net losses in two out of its
three most recent fiscal years, the American Stock Exchange had notified it in a
letter, dated July 31, 2006, that it did not meet its continued listing
standards as set forth in Section 1003(a)(i) of the AMEX Company Guide. To
maintain the registrant's listing, the registrant must submit a plan by August
30, 2006 advising the exchange of action it has taken or will take, that would
bring the registrant into compliance with the continued listing standards within
a maximum of 18 months of receipt of the letter.

The registrant anticipates that its previously announced financing will close in
August and that the registrant's equity will then be more than $2,000,000. While
the Company believes that its current financing efforts shall resolve any
concern about the Company's continued listing on the exchange, there can be no
assurance that the Company's continued listing will be achieved. The registrant
will, accordingly, submit its plan to the exchange in a timely manner.

A copy of the press release is attached as Exhibit 99.1 to this Current Report
on Form 8-K.

Item 9.01 Financial Statements and Exhibits.

Exhibit 99.1 - Press Release of August 3, 2006








                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf, thereby
duly authorized.



    Date: August 3, 2006
                                       Transnational Financial Corporation


                                       /s/ Joseph Kristul
                                       --------------------------------------
                                       Joseph Kristul, Chief Executive Officer

EX-99

                                  EXHIBIT 99.1

     Transnational Financial Network Announces Notice of Non-Compliance with
                             AMEX Listing Standards
                       Anticipates Satisfactory Resolution

August 3, 2006 - Transnational Financial Network, Inc. (AMEX: TFN - News), a
wholesale and retail mortgage banking firm, announced today that on July 31,
2006, it received a letter from the American Stock Exchange indicating that the
Company fails to comply with Section 1003(a)(i) of the Company Guide with
shareholders' equity of less than $2,000,000 and losses from continuing
operations and/or net losses n two out of its three most recent fiscal years.

Transnational has previously announced that it has entered into an agreement to
sell 3,000,000 shares of Common Stock for $0.70 per share to Pegasus Funds.
While this transaction was anticipated to close in July, closing is now
anticipated to occur in August.

"We have applied to list the shares on the American Stock Exchange to be
purchased by Pegasus Funds," said Joseph Kristul, Transnational's Chief
Executive Officer, "and anticipate closing on the investment within ten days of
the application's approval. With the sale of these shares we are confident that
our listing on the exchange will continue."

By August 30, 2006, the Company anticipates, pursuant to the exchange's rules,
submitting a plan to the exchange to assure continued compliance with the
exchange's listing standards. While the Company believes that its current
financing efforts shall resolve any concern about the Company's continued
listing on the exchange, there can be no assurance that the Company's continued
listing will be achieved.

Transnational Financial Network, Inc. is a wholesale and retail mortgage banker
that originates, funds and sells mortgage loans secured by one to four family
residential properties. Through its strong sales and broker service programs,
the Company has built a foundation for growth and expansion, principally in the
markets of Northern California, Southern California and Arizona.

This News Release may contain "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, and Section 21E of the Securities
Exchange Act of 1934. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove correct.