US sanctions Iraqi Banks, plans to ban foreign electronic payments

Shafaq News/ The United States imposed sanctions on several Iraqi banks and plans to prohibit the use of electronic payment cards abroad, an Iraqi government source revealed on Sunday.

The source, who requested anonymity, told Shafaq News that Iraqi authorities received an official notice from the US Treasury Department detailing the sanctions, which target banks and exchange companies accused of facilitating illegal transfers and funneling US dollars to sanctioned entities, particularly in Iran.

“As a first phase, sanctions have been placed on five Iraqi banks, with more under review,” he noted. “The US also informed Iraq of a decision to ban the use of all electronic payment cards outside the country within two months after uncovering suspicious transactions.”

The move follows investigations by a US monitoring team tracking financial activity in Iraq. The source remarked that “additional sanctions could follow as other banks and firms remain under scrutiny.”

The latest action extends a series of US restrictions on Iraqi financial institutions. In July 2023, the Treasury barred 14 banks from accessing dollars, including Al Mustashar Islamic Bank, Al Qurtas Islamic Bank, Erbil Bank, and International Islamic Bank. Four more were added in November, while others were removed from Iraq’s daily currency auctions over similar concerns.