Financial Crime World

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Treasury Targets Al-Huda Bank, Iraqi Banking System as Conduit for Terrorist Financing

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The U.S. Department of the Treasury has taken swift action to protect the Iraqi and international financial systems from abuse by terrorist financiers, fraudsters, and money launderers. This move comes as part of an ongoing effort to strengthen the Iraqi economy and safeguard both U.S. and Iraqi financial systems.

Al-Huda Bank’s History of Illicit Activity

FinCEN has gathered evidence demonstrating that Al-Huda Bank served as a significant conduit for the financing of Foreign Terrorist Organizations (FTOs), including Iran-aligned militia groups. The bank’s chairman, Hamad al-Moussawi, is complicit in its illicit financial activities and has been involved in money laundering operations on behalf of the IRGC-QF and Kata’ib Hizballah.

Key Points:

  • Al-Huda Bank served as a conduit for terrorist financing
  • Chairman Hamad al-Moussawi was involved in money laundering operations
  • The bank’s illicit activities were linked to Iran-aligned militia groups

OFAC Imposes Sanctions

The Office of Foreign Assets Control (OFAC) has imposed sanctions on Al-Huda Bank’s owner, Hamad al-Moussawi, for his support to the IRGC-QF, including through support for its proxy militia groups in Iraq. This move underscores the IRGC-QF’s abuse of the Iraqi banking sector to gain access to U.S. dollars and the international financial system.

Key Points:

  • OFAC imposed sanctions on Al-Huda Bank’s owner, Hamad al-Moussawi
  • The sanctions target the bank’s illicit activities linked to the IRGC-QF
  • The move aims to disrupt terrorist financing networks and protect the global financial system

Impact on Al-Huda Bank

As a result of today’s OFAC action, all property and interests in property of Al-Huda Bank that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, non-U.S. financial institutions and other persons that engage in certain transactions or activities with sanctioned entities and individuals may expose themselves to sanctions.

Key Points:

  • Al-Huda Bank’s property and interests in the United States are blocked
  • Non-U.S. financial institutions may be exposed to sanctions for engaging in certain transactions

Statement from Treasury

“This action demonstrates our commitment to disrupting terrorist financing networks and protecting the integrity of the global financial system,” said a Treasury spokesperson. “We will continue to work closely with international partners to prevent illicit activity and promote stability in the region.”

Key Points:

  • The Treasury’s action aims to disrupt terrorist financing networks
  • The goal is to protect the integrity of the global financial system
  • The Treasury will continue to work with international partners to prevent illicit activity

Additional Information

For detailed information on the Treasury’s efforts to combat terrorist financing and protect the global financial system, click here.

To stay up-to-date on the latest developments in this area, follow @USTreasury and @TreasuryOCC on Twitter.