Treasury Proposes Designation of Iraqi Bank, Sanctions Owner
The Treasury Department said this week it’s considering designating Iraqi-based Al-Huda Bank as a foreign financial institution of primary money laundering concern, and sanctioned its owner Hamad al-Moussawi. A proposed rule released by the Financial Crimes Enforcement Network could “sever the bank” from the U.S. financial system by blocking banks from opening or maintaining a correspondent account for or on behalf of the bank.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Treasury said Al-Huda Bank, which is sponsored by Iran, helps to “divert funds that could otherwise support legitimate business and the economic aspirations of the Iraqi people.” It also supports Iran's money laundering activities, which fund terrorism, the agency said. Al-Moussawi launders money for Iran's Islamic Revolutionary Guard Corps-Qods Force and Kata’ib Hezbollah, an IRGC-QF militia in Iraq.
FinCEN is seeking public comments on its proposed rule targeting Al-Huda Bank, which it said is the 30th largest bank in Iraq. Comments are due 30 days after Federal Register publication.