US probes suspected Iraqi money laundering channels
Shafaq News– Washington
The United States launched a broad review of suspicious financial activity in Iraq, US President Special Envoy to the country Mark Savaya said on Thursday, as Washington weighs possible sanctions against networks accused of undermining financial integrity and funding terrorist activity.
In a post on X, Savaya outlined meetings in Washington with the US Treasury Department and the Office of Foreign Assets Control (OFAC), where discussions examined vulnerabilities in Iraq’s state-owned and private banking sectors, alongside prospects for reform.
Today, I met with the U.S. Department of the Treasury and OFAC to address key challenges and reform opportunities across both state owned and private banks, with a clear emphasis on strengthening financial governance, compliance, and institutional accountability.We agreed to… pic.twitter.com/CU8Z4ZmYEV
— Mark Savaya (@Mark_Savaya) January 15, 2026
The talks extended to a review of records linked to questionable payments and financial transactions involving Iraqi institutions, companies, and individuals, noting that the activity under scrutiny includes alleged links to smuggling, money laundering, and fraudulent contracts and projects used to finance or facilitate terrorist operations.
“We also discussed next steps related to forthcoming sanctions targeting malign actors and networks that undermine financial integrity and state authority,” he added.
In recent months, the Treasury has sanctioned more than 30 Iraqi individuals and entities for laundering billions through offshore fronts and illicit currency exchanges. It has also targeted more than a dozen companies and individuals in Hong Kong and the United Arab Emirates, accusing them of channeling funds to Iran’s military through oil sales and cryptocurrency.
