Here is the rewritten article in markdown format:

US Department of Treasury Takes Action Against Al-Huda Bank to Prevent Terrorist Financing and Money Laundering

Washington D.C., June 26, 2024

The US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a final rule under section 311 of the USA PATRIOT Act to sever Al-Huda Bank from the US financial system. This move aims to prevent terrorist financing and money laundering by prohibiting domestic financial institutions and agencies from opening or maintaining correspondent accounts for or on behalf of the Iraqi bank.

Al-Huda Bank: A Conduit for Terrorist Financing

Al-Huda Bank has been identified as a conduit for terrorist financing, exploiting its access to US dollars to support designated foreign terrorist organizations, including Iran’s Islamic Revolutionary Guard Corps (IRGC) and IRGC-Quds Force. The chairman of Al-Huda Bank is also complicit in the bank’s illicit financial activities.

Key Provisions of the Final Rule

• Prohibits covered financial institutions from opening or maintaining correspondent accounts for or on behalf of Al- Huda Bank.
• Requires them to take reasonable steps not to process transactions involving the bank.
• Mandates special due diligence on foreign correspondent accounts to prevent their use in processing transactions involving Al-Huda Bank.

Under Secretary’s Statement

According to Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson, “Today’s final rule severs a key channel for money laundering and terrorist financing, ensuring both the integrity of the Iraqi and international financial systems as well as the continued development of legitimate business and trade.”

Background and Context

This move is part of efforts to prevent Iran and its proxies from exploiting vulnerabilities in Iraq’s financial system to facilitate their destabilizing activities. FinCEN had previously issued a finding and notice of proposed rulemaking on January 31, 2024, identifying Al-Huda Bank as a foreign financial institution of primary money laundering concern.

Access the Final Rule and NPRM

The final rule is available for review on the Federal Register website: [link] The January 31, 2024 NPRM can be accessed online: [link]