Washington Prepares Major Sanctions against Iraqi Figures Over Money Laundering, Armed Groups Funding

ERBIL (Kurdistan24) — Iraqi authorities have been informed that the United States is preparing to issue a new round of sanctions targeting politicians, businessmen, and multiple companies, according to three Iraqi government sources familiar with the matter.

One official told Al-Araby al-Jadeed that Washington views the move as a response to recent attacks on gas and oil fields, as well as part of a wider effort to curb money laundering and financial support to armed groups.

According to the sources, US officials conveyed during recent visits to Baghdad that the upcoming sanctions list will include individuals involved in funding channels linked to armed groups operating in the interests of a neighboring country. The measures, which will be finalized by the US Treasury Department, are expected to focus on entities believed to be facilitating illicit financial activities.

A diplomat from the Iraqi Foreign Ministry confirmed that the list includes senior members of armed factions that also maintain political representation in parliament.

Aid Hilali, a political analyst close to the Iraqi prime minister, said Iraqi political circles widely expect the sanctions, noting that they will target a broad range of political, economic, and commercial figures, including members of the private sector. He added that leaked information indicates Washington has completed reviews of the financial and security records of several politicians, businessmen, and faction leaders, as well as companies in the energy transport and logistics sectors.

“The United States has signaled through several channels that these sanctions will form part of a new approach aimed at restructuring Washington’s relationship with Baghdad,” Hilali said. “Leaked details suggest the measures will be significantly wider than previous rounds, raising concerns about the political and security fallout.”

Nizar Haider, head of the Iraqi Media Center in Washington, said both Baghdad and Washington are awaiting the official announcement, which could include dozens of individuals and entities believed to be influenced by foreign governments. He noted that the measures are expected to restrict their future activities inside Iraq.

Haider also stressed that the US may oppose the appointment of individuals aligned with external actors to senior positions in Iraq’s next government, signaling potential diplomatic friction in the formation of the new cabinet.

The US Treasury Department has, in recent years, sanctioned several Iraqi figures and companies over allegations of corruption, money laundering, and arms smuggling. In October, Washington issued sanctions against several political leaders, military officials, and private firms.