US Imposes Sanctions on Iraq Development Bank Over Iran Links

Key Facts

The United States imposed Iran-related sanctions on the Iraq Development Bank. The National reported that the US Treasury Department designated the bank under sanctions authorities targeting financial conduits linked to Tehran. The action is part of a broader US effort to disrupt Iranian financial networks and their influence within the Iraqi banking sector.

Treasury Secretary Scott Bessent stated that the measures are intended to tighten the pressure on Iran's economy and its partners. These sanctions follow a 2024 move by Iraq to ban the Iraq Development Bank and seven other local commercial banks from engaging in US dollar transactions. The Treasury Department indicated it is targeting all sources of illicit revenue and sanctions evasion schemes used by the Iranian regime to move funds.