Dubai, United Arab Emirates – The US Treasury Department’s Office of Foreign Assets Control (OFAC) announced new sanctions on individuals and companies. It said these were helping the Iranian regime circumvent US sanctions, smuggling weapons, and participating in widespread corruption in Iraq.
In a statement issued Thursday, the Treasury Department stated that “the Iranian regime relies on a number of Iraqi militias affiliated with it.
Among them is the Kataib Hezbollah group, which is classified as a foreign terrorist organization by the United States, to infiltrate the Iraqi security forces and economy.
The statement added that Tehran-backed groups are responsible for the killing of members of the US forces.
It also carried out attacks on the interests of the United States and its allies throughout the Middle East.
The statement indicated that these groups are deliberately weakening the Iraqi economy. They are monopolizing the country’s resources through bribery and corruption.
Which prevents the establishment of an effective government capable of achieving stability in the region.
The statement explained that the sanctions targeted bankers. These individuals exploit the Iraqi economy in money laundering operations for the benefit of the Iranian regime.
He added that a “terrorist front company” providing support and services to Iraqi militias was also included in the sanctions list.
The US Treasury Department had previously announced a broad new sanctions package. This package targeted more than 50 individuals, companies, and ships in multiple countries.
Among them are Hong Kong, Singapore, India, Turkey, China, Panama, Ukraine, and the Marshall Islands. These are linked to the Iranian energy sector.
Targeting the assets of the Quds Force in Iraq
The Treasury Department also said it would take action against Iranian Revolutionary Guard –Quds Force– assets located in Iraq.
Which operates a network to collect intelligence information, including about US forces.
In this context, John K. Hurley, Deputy Secretary of the Treasury for Terrorism and Financial Intelligence, said: “The Treasury Department is targeting Iranian-backed militias responsible for the killing of American individuals”.
He added: “We seek to dismantle the financial networks that support these terrorist groups, and cutting off their financing channels is necessary to protect American lives and our national security”.
The US Treasury Department designated the Quds Force of the Revolutionary Guards as a special international terrorist organization in 2007, pursuant to this executive order.
In April 2019, the US State Department classified it as a foreign terrorist organization.
The Iraqi Kataib Hezbollah also designated a terrorist organization in the summer of 2009.
Engineer General Company and its role in financing the Hezbollah Brigades
The statement referred to the “Engineer General” company. This company was established by Kataib Hezbollah in Iraq. It works as a contractor in the fields of construction, engineering, mechanics, agriculture, and industry.
He explained that the company benefits from informal methods to obtain financing through Iraqi government contracts.
This gives it financial resources to support militia activities.
The Treasury Department accused Iran of seeking to exploit the Iraqi economy to evade sanctions. They do this through illegal financial networks of the Revolutionary Guards inside Iraq.
Three Iraqi bankers and figures affiliated with the Hezbollah Brigades were included in the sanctions list
The new sanctions included: Ali Muhammad Ghulam Hussein Al-Ansari, Ali Muftan Khafif Al-Baydani, and Aqeel Muftan Khafif Al-Baydani. They are directors of three Iraqi banks who were accused of exploiting their positions to launder money for the benefit of the Quds Force, Kataib Hezbollah, and Asaib Ahl al-Haq.
The statement also included the names of Hassan Qahtan al-Saeedi, Muhammad Qahtan al-Saeedi, and Haitham Sahib Saeed. They are members of the Iraqi Hezbollah Brigades, accused of collecting information for the Iranian Revolutionary Guard. Additionally, they provided material, financial, or technical support to this military arm of the Iranian regime.
Asset freeze and warning of secondary sanctions
The Treasury Department stressed that the sanctions mean freezing all assets and financial interests belonging to targeted individuals and entities within the United States. It also stressed these must be reported to the Office of Foreign Assets Control.
Penalties also include any entity in which one of the listed individuals – individually or collectively – owns 50% or more of its shares, unless it is licensed by the office under a general or special exemption.
The ministry warned that violating US sanctions could lead to civil or criminal penalties. These could be imposed on US or foreign individuals.
She noted that financial institutions and other individuals may be subject to sanctions. This occurs if they engage in specific transactions or activities involving listed parties.
