WASHINGTON/BAGHDAD – The United States has blocked 14 Iraqi banks from doing dollar transactions, according to U.S. officials. The Treasury Department and the Federal Reserve Bank of New York imposed the ban to prevent U.S. currency from being channeled to Iran. The U.S. discovered that these banks were involved in money laundering and fraudulent activities, some of which may have benefited sanctioned individuals, raising concerns about Iranian influence.
“We suspect that some of these laundered funds could end up benefiting either designated individuals or individuals who could be designated,” said a senior U.S. official. “The main sanctions risk in Iraq is related to Iran.”
As of now, the Iraqi government, U.S. Treasury Department, and New York Fed have not responded to requests for comment. Due to U.S. sanctions, Iran has been unable to access billions of dollars in assets across multiple countries.
The United States has been urging oil-rich Iraq, the second-largest producer in OPEC, to become self-sufficient. Washington has been pressuring Iraq to stop the flow of dollars into neighboring Iran.
Reported by Kanishka Singh and Daphne Psaledakis in Washington, Timour Azhari in Baghdad, Michael S. Derby in New York, and Akanksha Khushi in Bengaluru; Edited by Doina Chiacu.
Credit: The Star : News Feed
