The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced new sanctions targeting individuals and companies accused of helping the Iranian government evade U.S. sanctions, smuggle weapons, and engage in corruption in Iraq. The Treasury alleges that these groups, including Kata’ib Hizballah—a U.S.-designated foreign terrorist organization—use Iraqi militia proxies to influence Iraq’s security forces and economy.
According to the Treasury, these Iran-backed militias are responsible for attacks that have killed U.S. personnel and threaten American interests and allies across the Middle East. The department states that such groups undermine Iraq’s economy by monopolizing resources through corruption and obstruct efforts to establish a stable government.
The latest designations include bankers accused of laundering money for Iran and a front company alleged to support Iraqi militia groups. The Treasury is also acting against assets of the Islamic Revolutionary Guard Corps (IRGC) based in Iraq that reportedly gather intelligence on U.S. forces.
“Treasury is targeting Iran-backed militia groups responsible for the deaths of U.S. personnel,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley. “Under Secretary Bessent’s leadership, we are working to dismantle the financial networks that enable these terrorist groups to operate. Cutting off their financial flows is essential to protecting American lives and our national security.”
These actions are taken under Executive Order 13224, which targets terrorists and their supporters. The IRGC-Qods Force was designated as a Specially Designated Global Terrorist entity in 2007, while Kata’ib Hizballah received similar designations in 2009.
This move follows previous OFAC actions from July 3 and September 2, 2025, which targeted individuals and entities involved in smuggling Iranian oil through Iraqi territory.
Among those designated is Muhandis General Company, described as a business conglomerate controlled by Kata’ib Hizballah leader Abd al-Aziz Malluh Mirjirash al Muhammadawi (Abu Fadak). The company allegedly uses sub-contracting methods to divert funds from Iraqi government contracts and plays a role in smuggling weapons under its cover as an agricultural business.
Baladna Agricultural Investments is also named as a commercial front for Muhandis General Company, accused of facilitating illicit revenue through government contracts.
Three Iraqi bank executives—Ali Mohammed Ghulam Hussein Al Anssari (Ali Ghulam), Ali Meften Khafeef Al Baidani (Ali Meften), and Aqeel Meften Khafeef Al Baidani (Aqeel Meften)—are sanctioned for allegedly using their positions to benefit IRGC-QF and affiliated militias by laundering money and generating revenue for these groups.
The Treasury also highlighted intelligence collection efforts by Kata’ib Hizballah leaders working with IRGC officials against U.S. interests in Iraq. Individuals named include Hasan Qahtan Al-Sa’idi, his son Muhammad Qahtan Al-Sa’idi, and Haytham Sabih Sa’id.
As a result of these measures, all property belonging to those designated that falls within U.S. jurisdiction is blocked, with reporting requirements imposed on U.S. persons holding such property. Entities owned 50 percent or more by one or more blocked persons are also subject to these restrictions.
Violations of these sanctions can result in civil or criminal penalties for both U.S. and foreign persons. Financial institutions may face additional risks if they engage in transactions involving those designated.
OFAC states that its ability to add or remove names from its Specially Designated Nationals list aims not only at punishment but at encouraging changes in behavior.
For further details about those designated or blocked today, visit the official OFAC website.
