US Congressman demands sanctions on Iraq’s Al-Rafidain Bank over “money laundering”

Shafaq News/ US Republican Congressman Joe Wilson renewed his criticism of Iraq demanding sanctions on Al-Rafidain Bank, Iraq’s largest state-owned financial institution, accusing it of being “a tool for laundering money for Iran and its allies to access US dollars.”

Wilson claimed in a post on X that “under Biden and Brett McGurk, the US treasury allowed Rafidain Bank, the largest in Iraq, to become the money laundering machine for the Iranian regime and its puppets to obtain US$,” stressing that sanctions must be imposed on the bank, and that “Trump will fix it.”

The congressman had also criticized Biden’s Iraq and Iran policies in a separate statement on Wednesday, alleging that Iraq “continues to send $10 billion annually to Iran for oil and electricity purchases due to US exemptions.”

He argued that this exemption “strengthens Tehran’s regime and keeps Iraq under Iranian influence,” calling for its cancellation to push Iraq toward energy cooperation with the Arab world.

Al-Rafidain Bank is central to Iraqi government payroll, international transactions, and financial services, and has been previously linked to US concerns over “money laundering.”

In 2023, the US Treasury blacklisted 14 Iraqi banks over alleged money laundering and illicit transactions linked to Iran, although the US has repeatedly issued waivers allowing Iraq to continue purchasing Iranian energy without facing sanctions, as Iraq relies heavily on Iranian gas and electricity to meet domestic energy demands.