US Adds Sanctions Warnings to Two Baghdad Banks
The Treasury Department added secondary sanctions warnings to Iraqi banks and individuals tied to an existing sanctions listing.
Updated on Nov. 4, 2026 in Financial Crime
The US Treasury on Wednesday added secondary sanctions warnings to two Baghdad-based banks and several Iraqi individuals, through existing sanctions listings. The Office of Foreign Assets Control also added the warning to two companies in Salim Ahmed Said's network.
Why it matters
Secondary sanctions warnings signal that foreign financial institutions dealing with listed parties could themselves face US penalties. The move follows the earlier designation of the International Development Bank for Investment and Finance, which was allegedly used to give Iran access to US dollars.
The warnings were added to existing sanctions listings rather than issued as new designations on Wednesday. Iraq's central bank has barred the International Development Bank for Investment and Finance from all dollar transactions.
The players
Office of Foreign Assets Control
The US Treasury office that administers and enforces economic and trade sanctions against foreign states, individuals and entities.
The details
The Office of Foreign Assets Control added the warnings to the International Development Bank for Investment and Finance and the Islamic Regional Cooperation Bank, both in Baghdad, as well as to several individuals and two companies in Salim Ahmed Said's network. The listed individuals include brothers Abdulhasan and Majid Ali Akbar Namdar Al-Mandalawi, based in Dubai, and entities such as VS Oil Terminal and VS Tankers, also known as Al Iraqia Shipping Services.
Timeline
October 15: The International Development Bank for Investment and Finance was designated by the US.
Wednesday, November 4, 2026: The Treasury added secondary sanctions warnings to Iraqi banks and individuals.
Legal Context
Secondary sanctions let the US penalize foreign banks that do business with designated parties, a tool used in the Iran sanctions regime. The Iraqi banking system has faced repeated US scrutiny over dollar access, and this action continues that pattern.
Businesses and banks that transact in US dollars with Iraqi counterparties may need to review their exposure to the listed entities. Customers of the named banks could face disrupted dollar transactions if access is restricted further.
The takeaway
Secondary sanctions warnings can reach beyond the named parties, so foreign banks and businesses should screen counterparties carefully. Watch for further OFAC listing updates tied to the same networks.
Further reading
For more background on how these penalties work, see our coverage of Financial Crime.
Source note: This article includes information reported by الخارجية الأمريكية لشفق نيوز: مجاميع مدعومة إيرانياً تشكل خطراً على 4 وتردع استثماراً في العراق.
