81 banks and financial institutions in Iraq... Why are most of them absent from global banking lists?
Iraq has a numerically large banking network, comprising dozens of government, commercial, Islamic, and foreign bank branches, but the paradox emerges when moving from the number of banks to their real weight on the international banking map; This large number is not reflected in a similar presence in the most prominent global bank rankings.
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According to the approved lists of operating banks, the Iraqi banking system includes 8 government banks, 24 local commercial banks, and 31 local Islamic banks, in addition to 16 branches of foreign banks and two representative offices, bringing the total number to about 81 banking institutions and representative offices.
However, research into the most international rankings, most notably the Top 1000 World Banks list issued by The Banker magazine, which is mainly prominent based on the size of Tier 1 Capital, reveals that the Iraqi presence in the global list has remained very limited compared to the number of banks operating in the country.
One of the most prominent documented Iraqi cases is the Trade Bank of Iraq (TBI), which in previous years managed to enter the list of the world's top 1,000 banks. According to officially published data from the bank, its ranking reached 319th globally in 2020 according to the Tier 1 Capital metric, after advancing 26 places compared to the previous year.
However, this ranking is historical and should not be treated as a current ranking for 2026. Even in the latest edition of The Banker's list, there is no documented current ranking in open public data that can be attributed to all Iraqi banks or even most of them individually.
This highlights one of the most significant problems in understanding the reality of Iraqi banks: the existence of dozens of banks does not mean that each one has a global ranking. Major international rankings are based on capital, assets, profitability, financial strength, market reach, and balance sheet quality, while the majority of small and medium-sized banks do not even appear on these lists.
The difference becomes even more apparent when comparing Iraq to the Gulf banking systems. Countries like Saudi Arabia, the UAE, Qatar, and Kuwait, while having fewer banks in some cases, have a stronger presence in global rankings because several of their banks possess significantly larger capital, assets, profitability rates, and international reach.
In Iraq, the IMF notes that the banking system remains heavily concentrated around two major state-owned banks, while private banks remain relatively small and face challenges related to limited capital, a limited customer base, and competition with state-owned banks. The IMF also pointed out that the dominance of large state-owned banks has hindered the emergence of stronger private banks.
The IMF also pointed to the need to complete the restructuring of state-owned banks, modernize the banking system, and expand international correspondent banking relationships, as essential steps for integrating the Iraqi banking sector more broadly into the global financial system.
Most telling is the risk assessment conducted by S&P Global Ratings on banking systems worldwide. In its July 2026 update, the agency placed the Iraqi banking system within the BICRA Group 10. ( S&P Global )
This ranking does not mean that Iraq is ranked tenth globally; Rather, the S&P scale ranges from Group 1 to Group 10, with Group 1 representing the lowest-risk systems and Group 10 representing the highest-risk systems. Thus, Iraq falls within the highest levels of banking risk according to this international scale.
A regional comparison reveals the widening gap. In the same S&P assessment, Saudi Arabia was in Group 3, the UAE and Qatar in Group 4, Kuwait in Group 3, Jordan in Group 6, while Iraq remained in Group 10.
This does not mean that all Iraqi banks are in trouble or in similar situations, because the BICRA rating relates to banking risks at the national and financial system levels, not to an individual rating for each bank. Rather, it reflects the environment in which these institutions operate and the strength of the surrounding regulatory, economic, and financial system.
S&P also notes that the Iraqi economy is highly sensitive to oil market fluctuations, and that its high dependence on oil and political and economic volatility affects the operating environment for banks. The agency has described the Iraqi banking environment in its reports as relatively weak compared to other banking systems.
Here the real question becomes: How many banks does Iraq have? But: How many of them are capable of competing globally?
The existence of dozens of banks does not automatically translate into a strong sector unless there are banks with large capitalizations, stable deposit bases, sustainable sustainability, strong governance, effective compliance systems, international correspondent relationships, and credit ratings comparable with regional and international institutions.
The presence of 16 branches of foreign banks in Iraq does not mean that they are included in the global classification of Iraqi banks, because the classification that a banking group such as Standard Chartered or others may have is due to the parent bank and its global group, and not to its branch operating inside Iraq as an independent Iraqi bank.
Therefore, describing all 81 banks as having a “global ranking” is inaccurate. The vast do not even appear in any of the most prominent majority rankings of the world's largest banks, while a limited number appear only in individual international data or assessments.
Between the large number and the weak international presence, it seems that the next challenge facing the Central Bank of Iraq will not only be maintaining dozens of banking licenses, but also building a less fragmented, stronger and more competitive sector.
The ongoing reform of the banking sector may, in the next phase, lead to a restructuring of the market, capital raising, compliance and governance requirements, and perhaps reducing the number of weak banks or merging some of them, in exchange for building larger institutions that are more capable of connecting with the international financial system.
In conclusion, the situation can be summarized in one sentence:
Iraq has dozens of banks, but it does not yet have dozens of banks with global influence.
The number has reached about 81 banking institutions and representative offices, but the presence in major global rankings remains limited, at a time when the Iraqi banking system is still classified among the highest risk groups by S&P.
This puts the sector to a real test: Will the upcoming reforms succeed in transforming the “abundance of banks” into “banking strength,” or will the map of Iraqi banks witness downsizing, mergers, and extensive restructuring in the coming years?
Officially... Al-Zaidi will travel to Paris next Sunday
The media office of Iraqi Prime Minister Ali Faleh al-Zaidi announced on Friday evening that he will begin an official visit to France on Sunday, September 13, at the invitation of President Emmanuel Macron.
The office indicated in a statement received by Shafaq News Agency that this visit comes within the framework of strengthening bilateral relations between Iraq and France, and exploring ways to expand partnerships in various fields and sectors, foremost among them energy and security.
According to the statement, Al-Zaidi will meet with French President Macron next Monday, September 14, and they will discuss a number of regional and international issues of common interest.
The two sides will chair the expanded talks session to be held by the Iraqi and French delegations, to lay the foundations for new partnerships between Baghdad and Paris, and to discuss the general frameworks for bilateral cooperation in the fields of economy, security, energy, education, and others, in order to contribute to confronting various regional and international challenges. They will also oversee the signing ceremony of a number of memoranda of understanding in several sectors, according to the statement.
Earlier today, an informed source told Shafaq News Agency that Iraqi Prime Minister Ali al-Zubaidi intends to travel to the United States to participate in the work of the United Nations General Assembly, following the end of his European tour, which includes France and Germany, while noting that there are efforts to arrange a meeting between him and US President Donald Trump.
Al-Zaidi had visited the United States in mid-July, at the head of a high-level delegation that included a number of ministers, government officials, members of parliament, and businessmen, on an official visit that lasted five days.
The visit focused on launching a comprehensive and diversified economic partnership to support the Iraqi economy, expand investment opportunities, revitalize the local labor market, and enable Iraq to open new outlets for exporting crude oil and increase production and refining capacities.
Source: Al-Zaidi plans US trip; Trump meeting in works
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Iraqi Prime Minister Ali Al-Zaidi plans to visit the United States after a European tour to attend the UN General Assembly in New York, with three major issues on his agenda as political efforts seek to arrange a meeting with US President Donald Trump, an informed source told Shafaq News on Friday.
The source said a political intermediary who previously helped organize Al-Zaidi’s July official visit to Washington is working to secure the meeting with Trump, which has yet to be confirmed.
If the meeting takes place, Al-Zaidi intends to discuss the withdrawal of US forces from Iraq under the agreed timetable and prospects for the post-withdrawal period, which the source said could see investment companies enter the country to begin implementing previously agreed projects.
Talks would also cover the government’s anti-corruption campaign and its next steps, including possible measures involving prominent figures suspected of corruption and several Iraqi banks, as well as the course of Iraq’s political process.
The 81st session of the UN General Assembly opened in New York on Sept. 8, with its high-level General Debate, which brings together heads of state and government, scheduled for Sept. 22-26 and Sept. 28.
Before traveling to New York, Al-Zaidi is scheduled to visit France and Germany in mid-September. Government spokesperson Haider Al-Aboudi said the European tour will focus on diversifying Iraq’s foreign relations and discussing several issues, including security.
The planned US trip would be Al-Zaidi’s second as prime minister. His first foreign visit after taking office included a meeting with Trump and produced 48 agreements and memoranda of understanding with US and international companies and institutions across sectors including energy, investment, infrastructure, technology and healthcare.
Al-Zaidi’s government program outlines a foreign policy based on balance and productive relations, seeking to keep Iraq out of regional and international rivalries. Since taking office, he has also visited Iran, Turkiye, and Qatar, while a planned trip to Saudi Arabia was canceled following joint Saudi-US strikes on Popular Mobilization Forces (PMF) headquarters in Iraq that killed at least 20 members and wounded 32 others.
Al-Maliki: Maintaining the political process in its current state is better than trying to reform it.
Independent/Baghdad/- Media outlets, social media pages, and WhatsApp groups have circulated a statement attributed to Nouri al-Maliki, head of the State of Law Coalition, which was understood to mean that he is warning against making fundamental reforms to the political process in its current form, in a position that contrasts with previous calls made by al-Maliki himself to amend the constitution and change the form of the political system.
Well-informed political sources told Al-Mustaqilla that the head of the Supreme Judicial Council, Judge Faiq Zaidan, is working on developing a new vision to reconsider the form of the political system, which includes moving from a parliamentary system to a semi-presidential system.
The sources added that political and intellectual efforts are underway, in parallel, behind the scenes to prepare a national project to reform the Iraqi state and address the imbalances that have accumulated in the structure of the political and constitutional system over the past years.
The statement in question originated from an article by journalist Walid Ibrahim published in Al-Zawraa newspaper following a meeting between Maliki and a group of media professionals and political analysts, which lasted about two hours without cameras.
Ibrahim said that Maliki, in response to a question about calls to reform the political process or find other paths for it, believed that keeping it in its current state was better than its absence, warning that “any attempt at reform could lead to the collapse of the roof on everyone.”
The current position highlights a contrast with a vision previously put forward by Maliki in June 2020, when he explicitly called for a national dialogue to reform the political system and amend the constitution, saying that the parliamentary system that emerged after 2003 suffers from “legal loopholes” and imbalances that, according to him, have led to power-sharing, corruption, failure and paralysis.
At the time, Maliki presented the presidential and semi-presidential systems as alternatives to the parliamentary system, arguing that the first step toward “real change” began with amending the constitution and building a more effective political system. He returned in October of the same year to reiterate that some articles of the constitution needed revision.
Judge Faiq Zaidan had criticized the interpretation of the concept of the “largest bloc” last March, considering that its practical results contributed to repeated political crises and delays in the formation of governments, and calling for a constitutional amendment to resolve the problem.
Al-Maliki's recent remarks do not clarify what has changed in his assessment between his call six years ago to rebuild the system and his warning today about the dangers of reforming it, but they reflect the widening disagreement over whether maintaining stability requires keeping the existing formula or embarking on broader constitutional and political reform.
Al-Zaydi's advisor: Domestic borrowing is ongoing and will not be less than two trillion dinars.
The Prime Minister’s financial advisor, Mazhar Saleh, confirmed that the government continues to resort to internal borrowing, indicating that its volume during the last months is no less than two trillion dinars .
Saleh said in a televised interview followed by Al-Sa’a Network that “the Ministry of Finance faced great financial pressures during the months of June and July, as a result of the decline in revenues and the inadequacy of the available resources to cover the needs, which prompted it to borrow from the local market through treasury transfers .”
He added that "the Central Bank played an important role in providing liquidity to banks and the economy, through debt financing instruments, which contributed to supporting the Ministry of Finance's ability to manage its financial needs ."
Saleh noted that "oil revenues have begun to improve gradually in recent months, explaining that the percentage of oil revenues rose from about 10% to 30% in August, before reaching about 70% at the end of the month, with exports rising to more than two million barrels per day ."
He pointed out that "Iraq faced additional costs and risks related to shipping and insurance, which prompted it to offer discounts on the prices of oil sold compared to global prices," indicating that "the rise in global oil prices nevertheless helped to maintain a good level of revenues."
Saleh confirmed that "the improvement in oil revenues has contributed to reducing the need for domestic borrowing and preventing it from doubling," but he stressed that "domestic borrowing during these months will not be less than two trillion dinars
The Kurdistan Regional Government details the results of its negotiating delegation's talks with the Ministries of Finance, Planning, and Oil in Baghdad.
The Kurdistan Regional Government announced on Thursday that its high-level negotiating delegation, which is currently visiting Baghdad, began its work program and meetings with the relevant ministries in the federal government on September 9, with the aim of participating in the preparation and drafting of the draft federal budget law for 2027, and establishing the region’s constitutional and financial share and entitlements.
The regional government stated in a statement that the first meeting was with the federal finance minister, where the delegation held a meeting with the federal finance minister and acting planning minister, Faleh al-Sari.
During the meeting, the delegation from the region appreciated the participation of representatives of the Kurdistan Regional Government in the drafting stage of the draft budget law at the Federal Ministry of Finance as an important and positive step, and reviewed the Kurdistan Region’s visions and proposals regarding the draft law.
In this context, the need to establish the share and entitlements of the Kurdistan Region in a fair manner and on constitutional and legal grounds was emphasized, with the aim of establishing a stable and clear basis for regulating financial relations between the federal government and the regional government.
For his part, the Federal Minister of Finance welcomed the participation of the region’s delegation and stressed the importance of continuing dialogue and coordination. He also affirmed that the Federal Ministry of Finance, in light of the constitution and relevant laws, will deal fairly with the financial rights and entitlements of the Kurdistan Region.
The next meeting was with the Federal Ministry of Planning, where a delegation from the regional government visited the Federal Ministry of Planning, and a joint meeting was held with the attendance of the undersecretaries of the Ministries of Planning in the Federal Government and the regional government, and the directors general concerned with government investment.
During the meeting, the delegation from the region stressed that the Kurdistan Region deserves its share of investment project allocations according to the results of the latest general population census, as well as allocations for regional and provincial development projects and petrodollars.
The delegation also demanded that the Kurdistan Region be granted its share of international loans, aid, and grants, since the region bears, according to its share, the responsibility for repaying these loans and their interest; and on this basis, it should receive shares of them and their benefits.
For its part, the delegation from the Federal Ministry of Planning welcomed the proposals and expressed its readiness to discuss them during the preparation of the draft budget law, and both sides agreed to continue technical and legal coordination in this area.
Meeting with the Federal Ministry of Oil
This was a continuation of the visit program, as the Kurdistan Regional Government delegation visited the Federal Ministry of Oil and met with its minister, the undersecretary of the ministry, and the relevant directors general.
The meeting agenda was dedicated to discussing the paragraphs related to the oil sector in the draft federal budget law for 2027, including the total estimated quantities of oil allocated for export (including the fields of the Kurdistan Region), the estimated price per barrel of oil for the fiscal year 2027, and the quantities of oil allocated for domestic consumption.
The regional delegation confirmed that the oil produced in the region and designated for export will be delivered to SOMO, to be sold in global markets and its revenues transferred to the federal treasury; this constitutes an important step to enhance cooperation between the two governments and increase federal revenues.
For his part, the Federal Minister of Oil and the ministry delegation welcomed the observations and suggestions, and stressed the importance of continued coordination and joint work to reach a balanced and practical formulation of the oil items in the 2027 budget, in a way that ensures the continuity of oil production and export.
The meetings emphasized resolving common issues through dialogue, coordination, and adherence to constitutional and legal frameworks, with the aim of securing the rights and entitlements of the Kurdistan Region in the 2027 federal budget bill and strengthening financial and economic cooperation between the regional government and the federal government.
The Kurdistan Regional Government delegation stressed the region’s commitment to fulfilling its constitutional and legal duties and obligations, while emphasizing the federal government’s responsibility to provide and secure the Kurdistan Region’s financial and constitutional share and rights, particularly the salaries and entitlements of the region’s employees, in a fair and equal manner to their counterparts in the rest of Iraq.
No loans or advances... Government banks have no liquidity.
An informed source revealed on Thursday that most government banks have stopped granting loans and advances of all kinds, attributing this to the lack of financial allocations and the lack of sufficient liquidity in those banks .
The source told Shafaq News Agency that the decrease in the volume of deposits and the decline in liquidity levels have directly affected the ability of government banks to provide loans and advances, as well as investment loans allocated to finance projects and residential complexes in Baghdad and the provinces .
He added that the decline in banking liquidity has reduced the ability of banks to continue financing various credit and investment activities, which may affect the flow of financing and support for housing and development projects .
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Al-Moussawi: The cabinet formation is nearing completion... and the vote will take place after the Prime Minister's return.
MP Hamed Al-Moussawi confirmed that there is a determination among the various political forces to finalize the cabinet formation, noting that the Prime Minister is determined to complete it before September 30.
Al-Moussawi said that the political forces are moving towards ending this issue, indicating that the commitments made by the political parties and the accelerated discussions and meetings aim to resolve the ministerial cabinet.
He explained that the cabinet will be completed and voted on after the Prime Minister returns from his European visit, stressing that talks and meetings will continue to reach a final agreement on ministerial positions.
Romanowski: The end of the "coalition" in Iraq does not mean Washington's absence from the security file.
A former US diplomat who served as her country's ambassador to Baghdad warned of the dangers of leaving a security vacuum in Iraq as the international coalition's military mission nears its end, calling for the establishment of alternative security arrangements to preserve stability in the country and the region.
Alina Romanowski, speaking at a panel discussion hosted by the Atlantic Council in Washington, said that the commitment to completing the mission by the end of September was a pre-agreed step, stressing that Washington's priority was and remains ensuring an orderly transition that allows for building a bilateral security relationship with Baghdad, away from an improved withdrawal.
The former ambassador considered that the most challenges facing the Iraqi government lie in the issue of armed factions, as efforts to restrict weapons to the state are met with the prominent refusal of some of these parties to engage in any reform of the security system.
She warned that the expansion of these factions' attacks to include neighboring countries strikes at the heart of Baghdad's declared desire to stay away from regional tension issues, making the security file directly linked to broader regional stability.
Romanowski stressed that reducing the American military presence does not mean a decline in the American commitment to Iraq, but rather a redirection of it towards intelligence support, training and counter-terrorism, considering that the stability of the security environment is a prerequisite for attracting investments and expanding economic cooperation between the two countries.
It is worth noting that Iraq and Washington agreed in September 2024 to end the mission of the international coalition within a phased plan, the first phase of which was completed in September 2025 with forces remaining in the Kurdistan Region to support operations in Syria, with the final phase to be completed by the end of September 2026.
US-led coalition forces have begun withdrawing from northern Iraq.
A minister in the Kurdistan region reported on Thursday that US-led international coalition forces have begun withdrawing from northern Iraq as the deadline for the end of their mission across the country approaches.
These forces had already completed their withdrawal from bases in other parts of Iraq in January, and their deployment is now limited to the autonomous Kurdistan region.
These forces are scheduled to complete their withdrawal from the entire country by September 30, under an agreement concluded between Baghdad and Washington in 2024.
Kurdistan Interior Minister Reber Ahmed told reporters, “Regarding the issue of the withdrawal of coalition forces from the Kurdistan Region or from Iraq in general, based on the existing agreement, these forces must leave by the end of September, and they have already begun doing so in earnest.”
He added, “They have also started in the Kurdistan Region, and those forces are being moved daily to other locations outside of Iraq.”
An Iraqi official confirmed to AFP that coalition forces have begun withdrawing from the region, and that their deployment is now limited to Erbil International Airport.
Coalition forces had left Syria earlier this year.
Spectrum guardianship fuels hoarding… and fears of demand shifting to the black market
The Iraqi market has witnessed significant exchange rate volatility in recent days, with the dollar exceeding 156,000 dinars in the parallel market, amid fears it could reach 160,000. This surge did not occur in a vacuum, but rather stems from declining confidence in the banking sector and a resurgence of hoarding, reigniting the debate about the financial system's ability to absorb shocks.
The Prime Minister's financial advisor, Mazhar Muhammad Salih, believes that what is happening is not merely currency fluctuation, but a dual test combining temporary regulatory measures aimed at international compliance with behavioral pressures in the parallel market. He asserts that expanding official channels for providing dollars, while quietly monitoring smuggling and speculation, represents the safest path to preventing the crisis from worsening.
He points out that oversight of banks and exchange companies will limit illegal speculation, while Iraq’s possession of safe hard currency reserves gives it the ability to intervene to prevent the price from reaching alarming levels, provided that this transitional phase is turned into an opportunity to rebuild confidence in the banks.
The crisis at Al-Taif Bank stands out as one of the factors that drove citizens to hoard cash after its financial situation deteriorated, payment cards were suspended, and transfers were disrupted, leading to widespread protests by depositors. Informed sources indicate that the bank's reckless expansion in investments and its allocation of a portion of its liquidity to government bonds contributed to the crisis before it was placed under receivership.
Experts believe that the rise of the dollar is also linked to increased regional demand, particularly its surge in Iran, which adds pressure to the Iraqi market. They emphasize that continued banking reform and the expansion of official channels remain the surest way to reduce the gap between the official and parallel exchange rates.
Why hasn't an oil and gas law been enacted? A former minister reveals the reasons.
Former MP and Minister Zuhair al-Jalabi revealed on Thursday the reasons why political parties have not moved forward with enacting the oil and gas law, despite nearly two decades having passed since attempts to pass this crucial legislation.
Al-Jalabi told Al-Maalouma, "The issue of annexing land from Nineveh Governorate to the Kurdistan Region is practically over, especially since the administrative boundaries of the governorates are defined within the Ministry of Planning and cannot be changed except by a decision from the Council of Representatives through a vote on a new administrative map of the governorates."
He added, "Regarding the oil and gas law, despite talk of obstacles related to shared lands and the ownership of oil fields, whether by Baghdad or the region, the problem is much larger because many countries are working to prevent the passage of such a law."
He explained that "the countries seeking to prevent the law's passage benefit from oil smuggling, the rampant corruption in the relevant ministry, and the chaos associated with this issue. Some countries are striving to ensure the continuation of this scenario to guarantee their own interests."
US pressure mounts on Baghdad: Iraqi banks face the test of sanctions and Iranian funding.
The United States has placed Iraq before a new financial and political obligation, with escalating American pressure aimed at narrowing funding channels linked to Iran, at a time when Baghdad faces a double challenge of protecting its financial system from the repercussions of sanctions and maintaining its economic relationship with Washington.
According to Shafaq News Agency, the US State Department threatened a broad economic campaign to cut off funding lines to Tehran, demanding that the Iraqi government fully engage in pursuing illicit financial activities and preventing the use of the Iraqi financial system in transactions that may be subject to US sanctions.
The American position came in response to questions posed by Shafaq News to the State Department regarding the measures required to spare Iraq the repercussions of the sanctions, especially in light of Iraqi political warnings that the country is entering a sensitive financial situation that may be affected by any additional restrictions on foreign transfers or dollar flows.
According to what the agency quoted from a spokesman for the US State Department, Washington views the current stage as a new path in the relationship with Baghdad, based on strengthening the economic and security partnership, in parallel with demanding that Iraq prevent the use of its territory or financial institutions in activities that conflict with US policy towards Iran.
But the American message carried a more sensitive aspect on the financial level, as the spokesman linked the continuation of support and partnership with Iraq to the need to cooperate in confronting regional financing networks that Washington says contribute to providing financial resources to Tehran.
The report noted that the United States has begun a campaign called “Operation Economic Paragon” targeting individuals and entities accused of engaging in illegal financial transactions linked to Iran, including those who deal with Iranian banks or help transfer funds through external channels.
These developments reflect the magnitude of the pressures that the Iraqi banking sector may face in the coming period, especially since any expansion of US sanctions or restrictions may directly affect the ability of some banks and companies to carry out international transfers and obtain dollars, which makes the financial compliance file one of the most sensitive files facing the Central Bank of Iraq and the government.
According to Shafaq News, the US State Department called on the Iraqi government and the international community to support the new measures and hold accountable those involved in illicit financial operations, in a clear indication that Washington wants Baghdad to take practical steps to separate the movement of funds within Iraq from any networks subject to sanctions.
This comes at a time when political and banking concerns are growing within Iraq that continued violations or weak oversight procedures could lead to the expansion of US restrictions to include additional financial institutions, potentially putting the Iraqi economy under new pressure in the exchange market, foreign trade, and international transfers.
According to the report, the US Treasury Department announced the launch of a new campaign against Iran at the direction of US President Donald Trump, while Treasury Secretary Scott Bessent described the measures as a campaign targeting Iran and the entities that provide it with financial support and enabling power.
These messages present Baghdad with a delicate equation: tightening control over the movement of funds and transfers to ensure continued access to the global financial system, while at the same time avoiding any internal disturbances that may result from tightening restrictions on banks or trade.
As US pressure on Iran's funding sources widens, the Iraqi banking system appears to be at the heart of the next phase, and Baghdad's ability to demonstrate the effectiveness of its compliance, anti-money laundering, and sanctions financing systems will largely determine the extent of the pressure Iraq may face in the future.
US Treasury Sanctions Iraqi Businessmen Over Iran Support
The Treasury said the measures were part of “Operation Economic Outcast,” a campaign launched to cut off the remaining economic networks and financial channels supporting the Iranian regime.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Thursday sanctioned Iraqi businessmen accused of supporting Iran-backed groups and helping Tehran evade sanctions.
The Treasury said the measures were part of “Operation Economic Outcast,” a campaign launched to cut off the remaining economic networks and financial channels supporting the Iranian regime.
The department said the operation, announced by U.S. Treasury Secretary Scott Bessent on Aug. 24, targets networks involved in oil smuggling, sanctions evasion and financing terrorism. It warned that entities facilitating money laundering or sanctions evasion on behalf of Iran risk being cut off from the U.S. financial system.
Iraqi militia commanders targeted
OFAC designated four members and commanders of Kata’ib Hizballah (KH): Ali Hasan Farhan Al-Lami, Hussein Ahmed Hussein Al-Dhuhaibawi, Mohamed Ameen Fadhil Ali Al-Shaikhli, and Karrar Mohammed Qasim Al-Hraishawi.
The Treasury said the four were sanctioned under Executive Order 13224 for acting directly or indirectly on behalf of Kata’ib Hizballah.
According to the Treasury, KH receives training, weapons, funding, intelligence and logistical support from Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF).
The Treasury further accused KH and other Iran-aligned Iraqi militias of carrying out hundreds of attacks against U.S. and Coalition forces since February, including attacks involving explosive drones and rockets.
Companies sanctioned
The Treasury also sanctioned Iraqi businessman Abdullah Nadhim Luaibi Al Ameri, his company Al-Brouj for General Contracting Company Ltd, and Khaldoon Naser Maryoosh Al-Abada, a representative of Ain Al-Iraq for Protecting Technology and Audio, Visual, and Communications Solutions Company Ltd.
Iraqi businessmen accused of helping Iran evade sanctions
The U.S. Treasury also designated Majid Ali Akbar Namdar Al-Mandalawi and Abdulhasan Ali A. Namdar Al-Mandalawi, along with Dubai-based Shams & Bahr Trading Company L.L.C.
According to the Treasury, Majid Al-Mandalawi used Iraqi private banks to transfer funds through the company’s hawala network, while the Dubai-based exchange was used to transfer millions of dollars from Iraq to Iran via the United Arab Emirates.
The latest sanctions come as Washington continues to intensify economic pressure on Iran under Operation Economic Outcast, targeting financial networks and individuals accused of supporting Iranian-backed armed groups and helping Tehran circumvent U.S. sanctions.
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