A7 rejects US claims linking its financial network to Iran

The response follows fresh measures announced by the U.S. Department of the Treasury against the A7 Network, which Washington accuses of operating a parallel financial system that facilitates sanctions evasion and illicit financial transactions.

In a statement, A7 denied conducting transactions on behalf of Iran or terrorist organisations, insisting that its operations are subject to strict compliance procedures.

“We have never conducted transactions in the interests of Iran or terrorist organizations,” the company said.

The firm said it operates a multi-level compliance system designed to screen clients and prevent transactions involving entities considered high-risk.

A7 further maintained that its network was established primarily to facilitate uninterrupted international settlements for Russia's sanctions-hit market, while also facilitating trade with countries and businesses not subject to restrictions.

The U.S. Treasury, however, has presented a sharply different account.

On October 1, the department announced sanctions against the A7 Network, designating it as what it termed a “significant transnational criminal organization.”

The Treasury alleged that the network had developed a system of sub-agents in several jurisdictions to disguise transactions linked to sanctioned entities as ordinary commercial activity.

It further claimed that the network had been used by Iranian entities, including the Islamic Revolutionary Guard Corps (IRGC), to move funds through the international financial system.

According to the Treasury, A7-linked sub-agents processed more than $17 billion (approximately Ksh2.2 trillion) between January 2025 and June 2026.

U.S. authorities also alleged that parts of the network facilitated transactions connected to Iranian oil sales and weapons procurement.

The Financial Crimes Enforcement Network (FinCEN), an agency under the U.S. Treasury, has consequently proposed a rule that would prohibit certain transfers of funds involving A7 Network sub-agents.

FinCEN also issued an alert directing financial institutions to identify and report suspicious activity potentially connected to the network.

A7 has disputed Washington's characterisation of its operations, maintaining that it facilitates legitimate international trade, including transactions involving consumer goods and raw materials.

The company argued that the latest sanctions demonstrate the effectiveness of the alternative settlement infrastructure it has developed outside traditional Western-controlled financial channels.

It said its objective was to create an independent international settlement network capable of continuing operations despite sanctions and geopolitical disruptions.

The dispute comes amid growing efforts by Russia and other sanctioned economies to develop alternative payment mechanisms that reduce reliance on Western financial infrastructure.

For companies and financial institutions dealing with A7, however, the U.S. measures significantly raise the compliance stakes, particularly for entities with exposure to the American financial system.

The latest measures form part of Washington's Operation Economic Outcast, through which U.S. authorities say they are targeting financial networks used by Iran and other sanctioned actors to access the international financial system.

A7, meanwhile, maintains that it is a legitimate financial operator and says allegations linking its operations to Iran and terrorist organisations are unfounded.