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FRANK26: "EVERYONE KNOWS THE REASON FOR THE DELAY"..........F26

US Congressman Calls for Immediate Sanctions on Iraq’s Rafidain Bank, Accuses Baghdad of Starving Kurds

3/11/2025

ERBIL-

U.S. Representative Joe Wilson has called on the U.S. Treasury Department to impose sanctions on Iraq’s state-owned Rafidain Bank, accusing it of laundering billions of dollars for Iraqi militias while the Iraqi government withholds salaries from Kurdish public sector employees.

In a post on X (formerly Twitter), Wilson, a Republican congressman from South Carolina, denounced the delays in sanctioning the bank and blamed Iraq’s Finance Minister, Taif Sami, for financial discrimination against the Kurdistan Region. “No more delay by the US Treasury Department to sanction Iraq’s Rafidain Bank – laundering billions for Iraqi militias while Iraq’s Minister of Finance Taif Sami is starving Iraqi Kurds and not paying their salaries. This must end. Trump will fix it,” Wilson wrote.

A Longstanding Dispute Over Kurdish Salaries

Wilson’s remarks come amid an ongoing financial dispute between the Kurdistan Regional Government (KRG) and Baghdad. The Iraqi federal government has repeatedly delayed payments to the Kurdistan Region, affecting thousands of Kurdish public servants. Kurdish leaders have accused Baghdad of using financial pressure as a political weapon, while the federal government claims administrative and legal hurdles have contributed to the delays.

The issue of Kurdish salaries has been a recurring point of contention, particularly after Baghdad and Erbil struck a revenue-sharing agreement that has frequently been challenged by shifting political dynamics in Iraq. The KRG has repeatedly urged Iraq to uphold its constitutional obligations, but financial disputes persist.

Accusations Against Rafidain Bank

The allegations against Rafidain Bank align with broader concerns in Washington about illicit financial activities benefiting Iran-backed militias in Iraq. The U.S. has sanctioned multiple Iraqi financial institutions over their roles in money laundering schemes that funnel funds to militia groups designated as terrorist organizations by the U.S. government. Notably, in February 2025, Iraq's central bank, in coordination with U.S. Treasury officials, banned five local banks from engaging in U.S. dollar transactions. These banks are Al-Mashreq Al-Arabi Islamic Bank, United Bank for Investment, Al Sanam Islamic Bank, Misk Islamic Bank, and Amin Iraq for Islamic Investment and Finance.

Wilson’s statement signals a growing push among U.S. lawmakers for a tougher stance on Iraq’s financial sector, particularly amid rising tensions between Washington and Iran-aligned actors in the region.

Political Ramifications and Trump’s Role

Wilson’s mention of President Donald Trump underscores the Republican Party’s broader narrative on foreign policy, particularly regarding Iran’s influence in Iraq. Many Republicans view Trump’s administration as having taken a stronger approach to countering Tehran’s regional activities, including the 2020 assassination of Iranian General Qasem Soleimani.

Now, in his second term as president, Trump has signaled a return to his hardline stance on Iran and Iraq, with a renewed focus on curbing militia financing and holding Iraqi institutions accountable. His administration is expected to intensify pressure on Baghdad to sever financial channels linked to U.S.-designated terrorist groups.

Wilson’s remarks suggest that Iraq’s handling of Kurdish finances and money laundering activities could gain greater prominence in U.S. political discourse. Moreover, the likelihood of the U.S. Treasury Department taking swift action has increased, potentially leading to additional sanctions on other Iraqi institutions accused of facilitating illicit financial flows.

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