A document issued by the Iraqi Ministry of Finance, which was leaked in parallel with Prime Minister Ali al-Zaidi's visit to Washington, included the Lebanese Hezbollah on the list of banking sanctions, within the framework of the US sanctions imposed on the party and under the item of combating the financing of terrorism and money laundering.
Although the document has not been officially announced by the Ministry of Finance or the government executive, Iraqi sources have confirmed that it is "correct."
Sources specialized in Iraqi affairs saw in this document, if it proves to be correct, an unprecedented strategic shift in Iraqi monetary policy, especially since it stipulates the immediate and comprehensive inclusion of the Lebanese Hezbollah and all institutions and companies associated with its financing on the list of banking sanctions and the unified financial freeze.
The sources considered that the leak of the document coincided with what they described as "sensitive talks" by the Iraqi prime minister at the White House, and is considered a full compliance with US demands to ensure the continued flow of dollars to the Central Bank of Iraq.
Document Content
The inclusion of Hizbullah on the banking sanctions list, according to the document, was based on Executive Order No. 13224, as amended, on counter-terrorism, issued by the Iraqi Prime Minister and dated July 7, and signed by Nadia Rashid Ali, Director General of the Economic Department at the Ministry of Finance.
The document states that the measure is based on two official letters issued by the State Department/U.S. Department of State on June 30, and the Office of the Secretary of the Treasury in early July, and that the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on 3 individuals and 6 entities in Europe, the Middle East and West Africa, for facilitating financial transfers for the benefit of the Islamic State.
The decisions included a number of Hizbullah-linked entities under Amended U.S. Executive Order 13224 on Counterterrorism, with the aim of pursuing and targeting the funding and logistical support networks on which the party relied.
OFAC sanctions affect the Syrian "covenant"
The latest U.S. sanctions package issued by the Office of Foreign Assets Control (OFAC), as stated in the Iraqi Finance Ministry document, included a regional group of companies that Washington accuses of acting as operational interfaces for a financial network run by Alaa Hassan Hamiyeh to collect revenue and facilitate transfers for Hezbollah.
Al-Shifa Administrative Services in Iraq, which was established in July 2025 to provide insurance management services, was among the entities targeted by the sanctions, after Washington classified it as a commercial interface used to finance the party, financial sources said.
In Lebanon, the restrictions affected Globe Technology Providers and TELL SAL, as part of Hamia's business facilitation network, and the measures extended to Syria, where Al-Ahed Trading and Investment Company was named as an entity active in the Syrian market to operate revenue-generating contracts and raise funds, while the sanctions also included the network's external arm in the Sultanate of Oman through Globe International SPC.
In parallel with these companies, the US Treasury has expanded the scope of sanctions to Lebanese financial institutions, which are the direct monetary structure of the party, especially the Al-Qard al-Hassan Association, which Washington describes as the most important parallel banking entity in its monetary transactions, as well as the Bayt al-Mal Foundation, which is one of its most prominent investment and financial arms.
Internal repercussions escalate controversy over leaked document
Iraqi sources put the document in the context of "a clear political-monetary swap between Baghdad and Washington, as the Zaidi government seeks to persuade the US Federal Reserve to lift restrictions on more than 20 Iraqi banks, and ensure increased shipments of cash dollars to promote exchange rate stability.
The sources said that Al-Zaidi sought to secure intelligence and technical cooperation within the "Dawn Prayer" file to track down the smuggled assets of the corrupt abroad.
The leaked document caused widespread political repercussions inside Iraq, with pro-government forces seeing the move as a necessary regulatory measure to protect the banking system from international isolation, while factions close to the Coordination Framework considered it to represent submission to U.S. dictates, warning that the inclusion of the Iraqi financial arena in Washington's conflict with Hezbollah could exacerbate the fragility of the political scene.