(Emirates Policy Center) Iraqi political and economic leaders fear that the Trump administration may impose additional financial sanctions on Iraqi banks, potentially threatening an economic crisis that would affect the entire country. The Iraqi banking system suffers from structural imbalances and governance gaps, which are exploited by private banks linked to political forces and militias to engage in money laundering operations, smuggle dollars to Iran and funnel funds to Iranian agents in the region. The Trump administration appears set to escalate its measures by blacklisting additional Iraqi banks. The aim is to cut off the flow of dollars from Iran and its regional proxies and place pressure on pro-Iranian Shiite militias in Iraq.
Emirates Policy Center | Iraqi Banking System: Caught Between Corruption and Sanctions
