Al-Bilad Islamic Bank and its owner Aras Habib Kareem: US terrorism-finance designation for moving IRGC-Qods Force funds through Iraq's banking system (2018)
On 15 May 2018 the US Treasury's Office of Foreign Assets Control designated Al-Bilad Islamic Bank for Investment and Finance and its chairman and chief executive, Aras Habib Kareem, saying Habib had enabled the Islamic Revolutionary Guard Corps-Qods Force to exploit Iraq's banking sector to move funds from Tehran to Hizballah. The bank was designated as being owned or controlled by Habib. The action was announced the same day as the designation of Iran's central bank governor, Valiollah Seif, for a related scheme. The Central Bank of Iraq said it barred the bank from buying or selling foreign currency and froze Habib's accounts to protect the integrity of Iraq's financial system. Both Habib and the bank remained on the US Specially Designated Nationals list as of September 2026; no Iraqi criminal prosecution of Habib is on record.
- Period
- May 2018
- Sector
- Banking, currency and dollar auctionPrivate bank ownership and sanctions
- Kind of case
- Sanctions designation
- Jurisdiction
- Federal Iraq
How the money moved, according to the sources
A privately owned Iraqi bank allegedly used to channel IRGC-Quds Force funds through Iraq's dollar-based banking system to Hizballah, under cover of ordinary correspondent-banking and currency transactions.
What happened
Both Aras Habib Kareem and Al-Bilad Islamic Bank remained on the OFAC Specially Designated Nationals list as of September 2026; the Central Bank of Iraq barred the bank from the foreign-currency market in 2018. No Iraqi court case or Integrity Commission action against Habib is on record.
Open questions
- Whether Iraqi authorities brought any domestic case against Aras Habib Kareem or the bank; the bank's current ownership, licensing and operating status inside Iraq.
People and companies
| Name | Role in the case | Legal status | Detail | As of |
|---|---|---|---|---|
| Aras Habib Kareem آراس حبيب كريم | Chairman and Chief Executive, Al-Bilad Islamic Bank for Investment and Finance | Under sanctions | Designated by OFAC (under Executive Order 13224, which concerns the financing of terrorism) on 15 May 2018 for enabling the IRGC-Quds Force to exploit Iraq's banking sector to move funds to Hizballah. Central Bank of Iraq froze his accounts. No Iraqi criminal case is on record. Still on the OFAC SDN list as of September 2026. | 28 September 2026 |
| Al-Bilad Islamic Bank for Investment and Finance P.S.C. مصرف البلاد الإسلامي للاستثمار والتمويل | Privately owned Iraqi bank | Under sanctions | Designated by OFAC 15 May 2018 as owned or controlled by Aras Habib Kareem. Central Bank of Iraq separately barred it from buying and selling foreign currency (2018). Still on the OFAC SDN list as of September 2026 (aliases include Al-Ataa/Al Attaa Islamic Bank). | 28 September 2026 |
Sources
- US Department of the Treasury15 May 2018Government statementTier A
Treasury Targets Iran's Central Bank Governor and an Iraqi Bank Moving Millions of Dollars for IRGC-Qods Force
Our copy (downloads as a file)OriginalSHA-256 663cbbc67b18Aras Habib enabled the IRGC-QF's exploitation of Iraq's banking sector to move funds from Tehran to Hizballah, jeopardizing the integrity of the Iraqi financial system.
- US Office of Foreign Assets Control (OFAC)15 May 2018Sanctions noticeTier A
Counter Terrorism Designations; Iran Designations (Recent Actions 20180515)
Our copy (downloads as a file)OriginalSHA-256 f8fe831cb06cKAREEM, Aras Habib ... Iraq; DOB 06 Aug 1967; POB Iraq; ... [SDGT] [IRGC] [IFSR] (Linked To: ISLAMIC REVOLUTIONARY GUARD CORPS (IRGC)-QODS FORCE).
- Kurdistan2417 May 2018Press reportTier D
Iraq blocks al-Bilad Bank after charges of financing terrorism
OriginalThe Central Bank of Iraq stated it took action "in order to preserve the integrity of the financial and banking system in Iraq" after al-Bilad Islamic Bank and its chairman were added to US Treasury sanctions lists.