U.S. Imposes Sanctions on 14 Iraqi Banks; Shafaq News Agency Reveals Banks Names

Shafaq News/ The United States has imposed sanctions on 14 Iraqi banks as part of a broader crackdown on the flow of U.S. currency to Iran.

According to officials cited by the Wall Street Journal on Wednesday, the ban, enforced by the Treasury Department and the Federal Reserve Bank of New York, aims to prevent these Iraqi banks from engaging in dollar transactions, highlighting the U.S. government's efforts to curb Iran's access to international funds.

Exclusive sources revealed to Shafaq News Agency that among the 14 banks subjected to the sanctions are Al Mustashar Islamic Bank for Investment and Finance, Al Qurtas Islamic Bank for Investment and Finance, Al Taif Islamic Bank, Elaf Bank, Erbil Bank for Investment and Finances, International Islamic Bank, Iraq Trans Bank, Mosul Bank for Development and Investment, Rajih Bank, Sumer Commercial Bank, Trust International Islamic Bank, Ur Islamic Bank (Al Mal Islamic Bank), World Islamic Bank for Investment and Finance, and Zain Iraq Islamic Bank for Investment and Finance.

Recently, the Central Bank of Iraq excluded four private Iraqi banks, namely Al-Ansari, Al-Sharq Al-Awsat, Al-Qabid, and Asia, from the currency sale auction following directives and warnings from the U.S. Treasury, which accused these banks of currency smuggling.

U.S. officials, speaking to the Wall Street Journal, disclosed that the decision to impose sanctions came after uncovering information indicating the involvement of the targeted banks in money laundering and fraudulent transactions.

Iraq, a long-standing neighbor of Iran, has been significantly affected by the U.S. sanctions. The Iraqi dinar has experienced unprecedented fluctuations against the U.S. dollar this year, with experts attributing this volatility to new measures implemented by the U.S. Federal Reserve targeting Iraq. To ensure strict enforcement of sanctions against Iran, the U.S. has taken measures to restrict the flow of the dollar to various countries, including Iran, Syria, Russia, and Lebanon.

The recent U.S. measures have resulted in price increases for some imported commodities within Iraq, while real estate sales in upscale areas of Baghdad have notably slowed down. Moreover, Iraqi power stations heavily rely on Iranian gas, but due to U.S. sanctions, Baghdad faces challenges in making direct payments for its gas imports from Tehran.

Consequently, Iran has reduced its gas supplies to Iraq by half, citing €11 billion in outstanding payments held in an Iraqi TBI bank account that Tehran cannot access, as confirmed by Prime Minister Mohammed S. al-Sudani. The intensified electricity rationing in Iraq and soaring temperatures of up to 50 degrees Celsius in Baghdad and southern regions have fueled significant discontent among the population.

In response, al-Sudani announced that Iraq would initiate a plan to exchange imported Iranian gas for crude and black oil to avert the impending crisis. However, Washington has affirmed that all sanctions imposed on Iran under President Joe Biden's administration will remain in effect, indicating a continued commitment to the existing policy framework.