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IRAQ'S CORRUPTION
العربية
Cases

US-driven dollar restrictions and Central Bank of Iraq bans on Iraqi banks (from 2022 to 2026)

From November 2022 the Federal Reserve Bank of New York required Iraqi dollar transfers to pass through an electronic compliance platform, rejecting many requests. The Central Bank of Iraq's own published list of institutions barred from US-dollar dealing records 4 banks barred from 3 November 2022, 14 banks from 20 July 2023 (after a reported US Treasury/FRBNY ban), and 8 banks (including Al-Huda) from 29 January 2024. In October 2025 OFAC designated three Iraqi bank executives (Ali Ghulam and the Meften brothers) for abusing their positions in commercial banks to benefit the Quds Force of Iran's Revolutionary Guards and militias. In July 2026 the central bank announced an understanding with the US Treasury allowing restricted banks a path back to non-dollar channels.

Period
From November 2022 to July 2026
Sector
Banking, currency and dollar auctionCorrespondent-banking controls on the dollar auction
Kind of case
Sanctions designation
Jurisdiction
More than one jurisdiction

How the money moved, according to the sources

This account is the one given by the sources listed on this page. It is not the finding of a court.

Banks controlled by politically connected or militia-linked owners used access to Central Bank of Iraq dollars (auction, wire transfers, cash) to move money abroad, launder corruption proceeds and evade Iran sanctions.

What happened

Administrative or sanctions measures; no Iraqi criminal convictions of bank owners are on record.

Open questions

  • Which banks regained USD access under the July 2026 understanding?
  • Iraqi judicial follow-up on the designated bankers?

People and companies

The table lists everyone this case names, with their legal status on the date shown. A status in this case does not carry over to any other case, and an accusation is not a conviction. How to read the status.
People and companies
NameRole in the caseLegal statusDetailAs of
Ali Mohammed Ghulam Hussein al-Anssari (Ali Ghulam)
علي محمد غلام حسين
Bank executiveUnder sanctionsPlaced on the US Treasury sanctions list on 9 October 2025 under Executive Order 13224, which concerns the financing of terrorism.25 September 2026
Ali Meften Khafeef al-Baidhani
علي مفتن خفيف البيضاني
Bank ownerUnder sanctionsPlaced on the US Treasury sanctions list on 9 October 2025 under Executive Order 13224, which concerns the financing of terrorism.25 September 2026
Aqeel Meften Khafeef al-Baidhani
عقيل مفتن خفيف البيضاني
Bank owner; president of Iraq's National Olympic CommitteeUnder sanctionsPlaced on the US Treasury sanctions list on 9 October 2025 under Executive Order 13224, which concerns the financing of terrorism; Treasury alleges abuse of Olympic Committee post "to engage in corruption".25 September 2026
Al-Huda Bank and seven other banks barred 29 January 2024
مصرف الهدى وسبعة مصارف أخرى
banksDisciplined by an official bodyBarred by the Central Bank of Iraq from USD dealing effective 29 January 2024 (administrative ban, not a court finding).25 September 2026

Sources

These are the documents on which this case rests. Each quote is given in the language of the document.
  1. Central Bank of Iraq4 February 2024Government statementTier A

    قائمة المحرومين من التعامل بعملة الدولار الأمريكي (list created 4 Feb 2024)

    Investment Bank of Iraq BIQ012/2 بغداد Baghdad 29 1 2024
    OriginalSHA-256 e133e1786473
  2. US Department of the Treasury9 October 2025Sanctions noticeTier A

    Treasury Takes Aim at Iran-Backed Militia Groups ... (sb0277)

    OFAC is designating three Iraqi bank executives today for abusing their positions within Iraq’s commercial banking sector
    OriginalSHA-256 2012e8116a41
  3. The Wall Street Journal (full text reprinted by To Vima)31 May 2025Press report (unnamed source)Tier C

    Needing Dollars, Iran-Backed Militias Turn to Visa and Mastercard (David S. Cloud)

    Iraq was a minor market for Visa and Mastercard a couple of years ago, generating just $50 million a month or less in cross-border transactions at the start of 2023. ... In recent days, Treasury formally asked the Iraqi central bank to block the more than 200,000 cards used by militia members due to fraud concerns.
    Original

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