2024-01-29T16:17:02+00:00
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/ The US Treasury Department on Monday listed the Iraqi Al-Huda Bank on the sanctions list as a major money laundering concern because it “serves as a conduit for terrorist financing by Iran.”
“Al-Huda Bank, an Iraqi bank that serves as a conduit for terrorist financing, as a foreign financial institution raises a major money laundering concern,” the US Treasury said in a statement seen by Agency, noting that “the Financial Crimes Enforcement Network (FinCEN) has proposed a rule that would separate the bank from the US financial system by preventing domestic financial institutions and agencies from opening or maintaining a correspondent account for or on behalf of Al-Huda Bank, in addition to imposing sanctions on the bank’s owner by the Office of Foreign Assets Control (OFAC).”
According to the Treasury, Al-Huda Bank and its foreign sponsors, including Iran and its proxy groups, divert funds that could support the legitimate businesses and economic aspirations of the Iraqi people. These bad actors also fuel violence that threatens the stability of Iraq and the lives of American and Iraqi citizens alike.
According to the US Treasury statement, Al-Huda Bank has for years exploited its access to US dollars to support designated foreign terrorist organizations including the Iranian Revolutionary Guard Corps, as well as Iraqi militia groups allied with Iran including Kataib Hezbollah and Asaib Ahl al-Haq.
The statement indicated that “the Chairman of Al-Huda Bank is complicit in Al-Huda Bank’s illicit financial activities, including money laundering through front companies that conceal the true nature of the parties involved in the illicit transactions, ultimately enabling the financing of terrorism.