Iraqi banks threatened by US sanctions over Iran dealings
Five Iraqi private banks face new US Treasury sanctions for dealings with Iran, as Deputy Parliament Speaker Shakhwan Abdullah warned that Baghdad must fully comply with Washington’s financial restrictions under President Trump’s tougher approach, according to Iraqi banking sources and officials.
‘America is determined to dismantle Iraqi militia groups,’ Abdullah told Kurdistan24 TV from Washington, adding that with Trump back in office, relations between Baghdad and Washington are likely to become more tense.
‘Any financial sanctions issued by the U.S. will be enforced 100% in Iraq,’ he said in the interview, published 17 February, noting Iraq’s dependence on dollar-based oil revenues through American financial channels leaves it ‘no option but to comply with U.S. financial directives.’
A Central Bank of Iraq source told the Al-Araby AI-Jadeed news website that ‘Iraq received an official request from the US Treasury to ban five banks and three electronic payment companies due to their involvement in dollar smuggling and money transfer operations in devious ways for the benefit of parties in Iran and others in Lebanon.’
Reuters reported the CBI will block AI-Mashriq Islamic Bank, United Investment Bank, AI-Sanam Islamic Bank, Misk Islamic Bank, and Ameen Iraq Investment and Islamic Finance Bank from dollar transactions following US-Iraqi talks in Dubai.
The Al-Araby source said the number of Iraqi private banks now under US sanctions has reached ’28 banks, out of 44 banks operating in Iraq.’ The penalties include ‘a ban on dealing in dollars, preventing any transfers or financial transactions in dollars.’
The moves follow Trump’s 4 February directive ordering agencies to prevent sanctions evasion through Iraq’s financial system – especially by Iran — and ensure ‘that Gulf countries are not used as sanctions evasion transshipment points.’
