Financial Crime World

US Imposes Sanctions on Iraq: What You Need to Know

The United States has implemented a series of sanctions aimed at promoting stability and security in Iraq, while also supporting the country’s reconstruction and development. In this article, we’ll break down the key points you need to know about these sanctions.

Exporting to Iraq

Exports to Iraq are generally allowed, but may be subject to certain restrictions and licensing requirements administered by other US government agencies. These restrictions do not apply unless the transaction involves a party blocked under OFAC’s authorities. If you’re planning to export goods or services to Iraq, make sure to check with the relevant agencies for any necessary permits or licenses.

Financial Transactions

Financial transactions with Iraq are permitted, including the opening of correspondent accounts for Iraqi financial institutions. However, if your transaction involves a party blocked under OFAC’s authorities, you’ll need to obtain prior authorization before proceeding.

Iraqi Cultural Property

The US has strict regulations governing the trade in or transfer of ownership of Iraqi cultural property, which includes items of archaeological, historical, and religious importance. If you’re interested in acquiring or exporting such items, be sure to contact the Cultural Property Office at the US Department of State for guidance.

Immunity from Attachment

Certain assets owned by the Central Bank of Iraq, the Development Fund for Iraq, and Iraqi petroleum and petroleum products are immune from attachment or other judicial process in the United States. This immunity is intended to support the orderly reconstruction of Iraq and the restoration of peace and security in the country.

Penalties for Violations

Violating these sanctions can result in serious consequences. Civil penalties of up to $250,000 or twice the amount of the underlying transaction may be imposed against any person who violates these sanctions. Criminal penalties of up to $1,000,000, imprisonment for up to 20 years, or both, may also be imposed on individuals who willfully violate the sanctions.

Reporting Violations

If you have information regarding possible violations of these regulations, please contact OFAC at 202/622-2430. Your call will be handled confidentially.

Important Note

This document is explanatory only and does not have the force of law. The Executive Orders and implementing regulations dealing with Iraq contain the legally binding provisions governing the sanctions, and this document does not supplement or modify those Executive Orders or regulations.

Contact Information

  • Office of Foreign Assets Control (OFAC)