The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has designated dual Iranian and Iraqi national Amir Dianat, a longtime associate of senior officials of Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). Dianat, who is also known as Ameer Abdulazeez Jaafar Almthaje, is involved in IRGC-QF efforts to generate revenue and smuggle weapons abroad.

OFAC is also designating Taif Mining Services LLC, a company owned, controlled, or directed by Dianat. Concurrent with OFAC’s action, the U.S. Attorney’s Office for the District of Columbia filed criminal charges against Dianat and one of his business associates for violations of sanctions and money laundering laws, and filed a related civil forfeiture action alleging that approximately $12 million is subject to forfeiture as funds involved in these crimes and as assets of a foreign terrorist organization.

“The Iranian regime and its supporters continue to prioritize the funding of international terrorist organizations over the health and well-being of the Iranian people,” said Treasury Secretary Steven T. Mnuchin. “The United States remains committed to working with financial institutions, non-profit organizations, and international partners to facilitate humanitarian trade and assistance to the Iranian people.”

Today’s action, taken pursuant to Executive Order (E.O.) 13224, as amended by E.O. 13886, follows recent designations of key networks that support the IRGC-QF’s destabilizing regional activity. In December 2019, OFAC designated an Iranian shipping network involved in smuggling lethal aid from Iran to Yemen on behalf of the IRGC-QF. In March 2020, OFAC designated 20 Iran- and Iraq-based front companies, senior officials, and business associates that provided support to or acted for or on behalf of the IRGC-QF, which included transferring lethal aid to Iranian-backed terrorist militias in Iraq.

Dianat, an associate of IRGC-QF officials Behnam Shahriyari and Rostam Ghasemi, has supported IRGC-QF smuggling operations for several years, including efforts aimed at the shipment of weapons including missiles. The IRGC-QF has relied on Dianat to secure entry for vessels carrying IRGC-QF shipments and has used his business connections to facilitate logistics requirements. Dianat has been directly involved in IRGC-QF efforts to smuggle shipments from Iran to Yemen.

Dianat has been involved in developing additional illicit business opportunities to generate revenue for the IRGC-QF, and in 2019, leveraged Taif Mining Services LLC, a company under his control, to procure an oil tanker.

Amir Dianat is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF.

Taif Mining Services LLC is being designated pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, directly or indirectly, Amir Dianat.

Sanctions Implications

As a result of today’s action, all property and interests in property of these persons that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. OFAC’s regulations generally prohibit all dealing by U.S. persons or within (or transiting) the United States that involve any property or interest in property of blocked or designated persons. In addition, persons that engage in certain transactions with the persons designated today may themselves be exposed to designation. Furthermore, any foreign financial institution that knowingly facilitates a significant transaction or provides significant financial services for individuals and entities designated in connection with Iran’s support for international terrorism or any Iranian person on OFAC’s List of Specially Designated Nationals and Blocked Persons could be subject to U.S. correspondent account or payable-through account sanctions.

Identifying information on the entities designated today.

(Source: US Treasury Dept)

By Bryant Harris for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

Soleimani’s successor visits Iraq, then Trump tweets warning to Iran

President Donald Trump took to Twitter on Wednesday to warn Iran against further attacks on US forces in Iraq – the same day that Iraqi officials told the Associated Press that the new head of the Quds Force had recently visited Baghdad.

Upon information and belief, Iran or its proxies are planning a sneak attack on U.S. troops and/or assets in Iraq,” Trump tweeted. “If this happens, Iran will pay a very heavy price, indeed!

Iranian Foreign Minister Mohammad Javad Zarif did not directly deny an Iranian plot in Iraq in his tweeted rebuttal.

Instead he characterized Iranian proxies as “friends” and obliquely referenced Trump’s January strike on former Quds Force commander Qasem Soleimani in Baghdad.

Click here to read the full article.

US Treasury Designates Vast Network of IRGC-QF Officials and Front Companies in Iraq, Iran

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has designated 20 Iran- and Iraq-based front companies, senior officials, and business associates that provide support to or act for or on behalf of the Islamic Revolutionary Guards Corps-Qods Force (IRGC-QF) in addition to transferring lethal aid to Iranian-backed terrorist militias in Iraq such as Kata’ib Hizballah (KH) and Asa’ib Ahl al-Haq (AAH).

Among other malign activities, these entities and individuals perpetrated or supported: smuggling through the Iraqi port of Umm Qasr; money laundering through Iraqi front companies; selling Iranian oil to the Syrian regime; smuggling weapons to Iraq and Yemen; promoting propaganda efforts in Iraq on behalf of the IRGC-QF and its terrorist militias; intimidating Iraqi politicians; and using funds and public donations made to an ostensibly religious institution to supplement IRGC-QF budgets. The terrorist militias supported by the Iranian regime such as KH and AAH have continued to engage in attacks on U.S. and Coalition forces in Iraq.

“Iran employs a web of front companies to fund terrorist groups across the region, siphoning resources away from the Iranian people and prioritizing terrorist proxies over the basic needs of its people,” said Treasury Secretary Steven T. Mnuchin. “The United States maintains broad exceptions and authorizations for humanitarian aid including agriculture commodities, food, medicine, and medical devices to help the people of Iran combat the coronavirus.”

Today’s designations were taken pursuant to Executive Order (E.O.) 13224, as amended, which targets terrorists and those providing support to or acting for or on behalf of designated terrorists or supporting acts of terrorism.

RECONSTRUCTION ORGANIZATION OF THE HOLY SHRINES IN IRAQ

The Reconstruction Organization of the Holy Shrines in Iraq (ROHSI) is an IRGC-QF-controlled organization based in Iran and Iraq whose leadership was appointed by the late IRGC-QF Commander Qassem Soleimani. Though ostensibly a religious institution, ROHSI has transferred millions of dollars to the Iraq-based Bahjat al Kawthar Company for Construction and Trading Ltd, also known as Kosar Company, another Iraq-based entity under the IRGC-QF’s control. Kosar Company has served as a base for Iranian intelligence activities in Iraq, including the shipment of weapons and ammunition to Iranian-backed terrorist militia groups.

Additionally, Kosar Company has received millions of dollars in transfers from the Central Bank of Iran, which was designated pursuant to E.O. 13224 in September 2019 for its financial support of the IRGC-QF and Lebanese Hizballah. Both the IRGC-QF and Hizballah have been designated by the U.S. Department of State as Foreign Terrorist Organizations under section 219 of the Immigration and Nationality Act.

In addition, IRGC-QF officials have used ROHSI’s funds to supplement IRGC-QF budgets, likely embezzling public donations intended for the construction and maintenance of Shiite shrines in Iraq.

ROHSI and Kosar Company are being designated pursuant to E.O. 13224 for being owned, controlled, or directed by, directly or indirectly, the IRGC-QF.

OFAC is also designating Mohammad Jalal Maab, the current head of ROHSI, who was personally appointed to the position by former IRGC-QF Commander Soleimani. Jalal Maab succeeded Hassan Pelarak, an IRGC-QF officer and co-owner of Kosar Company, who was selected by Soleimani to serve as his special assistant on an IRGC-QF-led committee focused on sanctions evasions activity. Pelarak also worked with IRGC-QF officials to transfer missiles, explosives, and small arms to Yemen, intensifying the Yemeni conflict and exacerbating one of the world’s worst humanitarian catastrophes.

Mohammad Jalal Maab is being designated pursuant to E.O. 13224 for being a leader or official of ROHSI. Hassan Pelarak is being designated pursuant to E.O. 13224 for having acted or purported to act for or on behalf of, directly or indirectly, the IRGC-QF.

Alireza Fadakar, another co-owner of Kosar Company, has worked in Iraq on behalf of the IRGC-QF for several years and is an IRGC-QF commander in Najaf, Iraq. Muhammad al-Ghorayfi is an IRGC-QF affiliate and employee of Kosar Company who provides administrative support to Fadakar and has facilitated the travel of IRGC-QF officials between Iraq and Iran.

Alireza Fadakar is being designated pursuant to E.O. 13224 for having acted or purported to act for or on behalf of, directly or indirectly, the IRGC-QF. Muhammad al-Ghorayfi is being designated pursuant to E.O. 13224 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Alireza Fadakar.

Masoud Shoustaripousti, another co-owner of Kosar Company, has worked in Iraq on behalf of the IRGC-QF for several years and has laundered money for the group. Shoushtaripousti worked with Mashallah Bakhtiari, who used Kosar Company to launder money and worked with officials at the Baghdad-based branch of Iran’s Bank Melli to deposit funds for the IRGC-QF in Iraq. OFAC designated Bank Melli in November 2018, pursuant to E.O. 13224, for acting as a conduit for payments to the IRGC-QF which also used Bank Melli to dispense funds to Iranian-backed terrorist groups in Iraq.

Masoud Shoustaripousti is being designated pursuant to E.O. 13224 for having acted or purported to act for or on behalf of, directly or indirectly, the IRGC-QF. Mashallah Bakhtiari is being designated pursuant to E.O. 13224 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF.

AL KHAMAEL MARITIME SERVICES

Separately, OFAC is taking action against Al Khamael Maritime Services (AKMS), an Iraq-based company operating out of Umm Qasr port in which the IRGC-QF has a financial interest. The IRGC-QF leveraged Shiite militia group contacts to evade Iraqi government inspection protocol at Umm Qasr port and has charged foreign companies and vessels fees for services at its terminal at the port. AKMS also worked to sell Iranian-origin petroleum products in contravention of U.S. sanctions against the Iranian regime.

AKMS is being designated pursuant to E.O. 13224 for being owned, controlled, or directed by, directly or indirectly, the IRGC-QF.

OFAC is also designating Hasan Saburinezhad, also known as Engineer Morteza, who is involved in the finances of AKMS. As a representative of AKMS, Saburinezhad worked to facilitate the entry of Iranian shipments into Iraqi ports for the benefit of the IRGC-QF. Saburinezhad is also involved in IRGC-QF financial and economic activities between Iran, Iraq, and Syria, including smuggling activities along the Syria/Iraq border. Saburinezhad also runs smuggling routes to help Iraqi terrorist group KH and the IRGC-QF smuggle goods into Iraq from Iran, and has assisted KH in funding the acquisition and transfer of goods out of Iran.

Saburinezhad is the Managing Director and a member of the board of directors of Mada’in Novin Traders (MNT), an Iran- and Iraq-based company associated with multiple IRGC-QF officials, including Vali Gholizadeh, who has worked with Saburinezhad for the benefit of both AKMS and MNT.

Hasan Saburinezhad is being designated pursuant to E.O. 13224 for having acted or purported to act for or on behalf of, directly or indirectly, the IRGC-QF. Mada’in Novin Traders is being designated pursuant to E.O. 13224 for being owned, controlled, or directed by, or to have acted or purported to act for or on behalf of, directly or indirectly, Saburinezhad. Gholizadeh is being designated pursuant to E.O. 13224 for being a leader or official of Mada’in Novin Traders.

OFAC is also designating Mohammed Saeed Odhafa Al Behadili, the Managing Director of AKMS, and Ali Hussein Falih Al-Mansoori, also known as Seyyed Rezvan, the company’s deputy managing director and head of its board of directors. Additionally, as of 2018, Al Behadili was focused on facilitating shipments and business transactions to circumvent U.S. sanctions against the Iranian regime. Al-Mansoori has worked with IRGC-QF officials on business issues related to AKMS.

Mohammed Saeed Odhafa Al Behadili is being designated pursuant to E.O. 13224 for having acted or purported to act for or on behalf of, directly or indirectly, AKMS. Ali Hussein Falih Al-Mansoori is being designated pursuant to E.O. 13224 for being a leader or official of AKMS.

Sayyed Reza Musavifar, who is responsible for the accounts and finances of AKMS, has worked with the IRGC-QF to transfer money to terrorist militias, including KH and Lebanese Hizballah. In 2014, Musavifar transferred the equivalent of millions of dollars of foreign currency to senior IRGC-QF officials.

Musavifar is a part owner of Middle East Saman Chemical Company, an Iran-based company that maintained an account at Rashed Exchange, an Iran-based exchange house used to convert currency for the IRGC-QF that was designated in May 2018 for being owned or controlled by Mohammadreza Khedmati, an individual designated for support to the IRGC-QF.

Sayyed Reza Musavifar is being designated pursuant to E.O. 13224 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF. Middle East Saman Chemical Company is being designated pursuant to E.O. 13224 for being owned, controlled, or directed by, or to have acted or purported to act for or on behalf of, directly or indirectly, Sayyed Reza Musavifar.

Additionally, Ali Farhan Asadi is being designated pursuant to E.O. 13224 for having acted or purported to act for or on behalf of, directly or indirectly, AKMS.

SAYYED YASER MUSAVIR AND MEHDI GHASEMZADEH

IRGC-QF official Sayyed Yaser Musavir has been deployed to Iraq extensively since early 2014 in support of the IRGC-QF, and he has coordinated operations between the group and Iraqi terrorist militia group officials. In 2019, Musavir coordinated with IRGC-QF officials to sell Iranian petroleum products to Syria. In 2018, Musavir coordinated propaganda efforts with AAH on behalf of senior IRGC-QF officials. AAH was designated in January 2020 by the U.S. Department of State as a Foreign Terrorist Organization under section 219 of the Immigration and Nationality Act and as Specially Designated Global Terrorist (SDGT) pursuant to E.O. 13224.

Sayyed Yaser Musavir is being designated pursuant to E.O. 13224 for having acted or purported to act for or on behalf of, directly or indirectly, the IRGC-QF.

Mehdi Ghasemzadeh is an IRGC-QF official and is being designated pursuant to E.O. 13224 for having acted or purported to act for or on behalf of, directly or indirectly, the IRGC-QF.

SHAYKH ‘ADNAN AL-HAMIDAWI

Shaykh ‘Adnan Al-Hamidawi is a Special Operations Commander for KH who in 2019 planned to intimidate Iraqi politicians who did not support the removal of U.S. forces from Iraq. KH, an Iranian-backed terrorist militia group that has been a U.S. Department of State-designated Foreign Terrorist Organization and SDGT since 2009, receives lethal support from the IRGC-QF, and has been responsible for numerous terrorist acts against Iraqi, U.S., and Coalition forces in Iraq for over a decade, including bombings, rocket attacks, and sniper operations.

Shaykh ‘Adnan Al-Hamidawi is being designated pursuant to E.O. 13224 for having acted or purported to act for or on behalf of, directly or indirectly, KH.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of these persons that are in or come within the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. OFAC’s regulations generally prohibit all dealings by U.S. persons or within (or transiting) the United States that involve and property or interests in property of blocked persons.

In addition, persons that engage in certain transactions with the persons designated today may themselves be exposed to sanctions. Furthermore, any foreign financial institution that knowingly conducted or facilitated any significant transaction on behalf of individuals and entities designated today could be subject to U.S. correspondent account or payable-through account sanctions.

Identifying information on the entities designated.

(Source: OFAC)

By Amberin Zaman for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

Iraqi Kurdistan president: ‘We are not scared of Iran, but we respect Iran’

The assassination of Iranian Maj. Gen. Qasem Soleimani of the Islamic Revolutionary Guard Corps (IRGC) in a Jan. 3 drone strike carried out by the United States sent shock waves throughout the region.

Those who argued that Tehran would take its time to retaliate proved wrong. On the night of Jan. 8, Iran launched more than a dozen missiles on Iraqi bases housing US forces. Several struck the Ain al-Assad base west of Baghdad.

Several others landed in an open field near an air base in Erbil, the capital of Iraqi Kurdistan. Nobody was killed. The attack was seen, however, as a clear message from Tehran about the potential punishment Iraqis would face if they pursue their relations with the United States.

Click here to read the full story.

By Christine McCaffray van den Toorn and Raad Alkadiri for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

US-Iran tensions shift Iraq from brink of reform to brink of war

Rising US-Iranian tensions over the past week have seemingly brought the two sides closer to outright confrontation than at any time in the past four decades.

Tehran’s vow to take revenge for the US drone strike Jan. 3 that killed the commander of the Islamic Revolutionary Guard Corps (IRGC) Quds Force, Qasem Soleimani, along with Abu Mahdi al-Muhandis, deputy head of the Popular Mobilization Units (PMU), or Hashid Shaabi, last week in Baghdad has been met with equally bellicose statements by US President Donald Trump, who sent 3,500 additional troops to the Middle East after the assassination and promised that any Iranian action would be met with a massive US military response.

Click here to read the full story.

Statement by the Department of Defense

At the direction of the President, the U.S. military has taken decisive defensive action to protect U.S. personnel abroad by killing Qasem Soleimani (pictured), the head of the Islamic Revolutionary Guard Corps-Quds Force, a U.S.-designated Foreign Terrorist Organization.

General Soleimani was actively developing plans to attack American diplomats and service members in Iraq and throughout the region. General Soleimani and his Quds Force were responsible for the deaths of hundreds of American and coalition service members and the wounding of thousands more.

He had orchestrated attacks on coalition bases in Iraq over the last several months – including the attack on December 27th – culminating in the death and wounding of additional American and Iraqi personnel. General Soleimani also approved the attacks on the U.S. Embassy in Baghdad that took place this week.

This strike was aimed at deterring future Iranian attack plans. The United States will continue to take all necessary action to protect our people and our interests wherever they are around the world.

(Source: US Dept of Defense)

A top commander voiced Iran’s readiness to provide neighboring Iraq with whatever means necessary for air defense.

In comments on Sunday, Commander of Khatam al-Anbia Anti-Aircraft Base of the Iranian Army, Brigadier General Alireza Sabahi Fard, said the Iranian Air Defense is fully prepared to satisfy Iraq’s air defense demands in all areas.

By relying on local experts, the Iranian Air Defense is ready to help Iraq in manufacturing and providing technical support for various air defense systems, the Iranian general said at a meeting with Major General Tariq Abbas Ibrahim Abdul Hussein, chairman of the Iran-Iraq joint commission, held in Tehran.

Sabahi Fard also noted that the Iranian technicians have manufactured a whole host of air defense systems, including tactical and stationary radars, artillery and missile weapons, signal and data collecting equipment, electronic warfare gear, and drones for missions and applications in diverse frequencies and ranges.

“We are ready to form expert committees in all spheres to pave the way for the launch and promotion of mutual cooperation,” the Iranian commander added.

For his part, the Iraqi general hailed Iran’s advances in the air defense industry, saying Iraqi military delegations have been acquainted with the Islamic Republic’s great capabilities after a series of visits to Iran.

The Iraqi commander also expressed his country’s willingness to work with Iranian air defense experts for manufacturing equipment, training, and technical support in various fields, such as electronic warfare, radars, visual monitoring, command and control, radar-related calculations, and software systems.

In April, Chief of Staff of the Iranian Armed Forces Major General Mohammad Hossein Baqeri said Tehran and Baghdad have agreed to launch air defense cooperation to combat possible threats to Iran’s western border.

Later in May, Commander of Iraq’s Navy Major General Ahmed Jasim Maarij and Commander of the Islamic Revolution Guards Corps (IRGC) Navy Rear Admiral Ali Reza Tangsiri met in Tehran to discuss promoting defense cooperation in the naval sphere, forming a joint commission of naval cooperation, enhancing coordination between the two navies, holding joint educational, scientific and research courses, sharing academic experiences, and staging joint naval exercises.

In July 2017, Iran and Iraq signed an agreement to boost military cooperation in a host of fields, including counterterrorism.

Based on the deal, Tehran and Baghdad try to promote interaction and share experiences in the fight against terrorism and extremism, work together to ensure border security, and provide each other with training and logistical, technical and military support.

(Source: Tasnim, under Creative Commons licence)

By John Lee.

The United States has imposed sanctions on an Iraqi company, South Wealth Resources Company (SWRC), which it is says is an Iraq-based affiliate of Iran‘s Islamic Revolutionary Guard Corps (IRGC).

The full text of the Treasury Department’s statement is shown below:

Today [Wednesday 13th June], the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on an Iraq-based Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) financial conduit, South Wealth Resources Company (SWRC), which has trafficked hundreds of millions of dollars’ worth of weapons to IRGC-QF-backed Iraqi militias.

SWRC and its two Iraqi associates, who are also being designated today, have covertly facilitated the IRGC-QF’s access to the Iraqi financial system to evade sanctions.  This scheme also served to enrich previously sanctioned Abu Mahdi al-Muhandis, an Iraqi advisor to IRGC-QF Commander Qasem Soleimani, who has run weapons smuggling networks and participated in bombings of Western embassies and attempted assassinations in the region.

SWRC and its two associates are being designated as Specially Designated Global Terrorists (SDGTs) pursuant to Executive Order (E.O.) 13224, which targets terrorists and those providing support to terrorists or acts of terrorism.

“Treasury is taking action to shut down Iranian weapons smuggling networks that have been used to arm regional proxies of the IRGC Qods Force in Iraq, while personally enriching regime insiders,” said Treasury Secretary Steven T. Mnuchin. “The Iraqi financial sector and the broader international financial system must harden their defenses against the continued deceptive tactics emanating from Tehran in order to avoid complicity in the IRGC’s ongoing sanctions evasion schemes and other malign activities.”

The IRGC-QF, designated pursuant to E.O. 13224 on October 25, 2007, is a branch of the IRGC responsible for external operations and has provided material support to numerous terrorist groups, including the Taliban, Lebanese Hizballah, HAMAS, and Palestinian Islamic Jihad, making it a key component of Iran’s destabilizing regional activities.  The IRGC-QF’s parent organization, the IRGC, was designated pursuant to E.O. 13224 on October 13, 2017, and on April 15, 2019 was designated as a Foreign Terrorist Organization by the Secretary of State.

South Wealth Resources Company

The IRGC-QF has used Iraq-based SWRC, also known as Manabea Tharwat al-Janoob General Trading Company, as a front to smuggle hundreds of millions of dollars’ worth of weapons to its proxies inside Iraq, while also generating profit in the form of commission payments for Abu Mahdi al-Muhandis, an OFAC-sanctioned advisor to IRGC-QF commander Qasem Soleimani, and two associates of SWRC who are also being designated today.  In addition to facilitating the IRGC-QF’s weapons smuggling into Iraq, SWRC has moved millions of dollars to Iraq for illicit financial activity benefitting the IRGC-QF and its Iraq-based militia groups.

SWRC is being designated today pursuant to E.O. 13224 for assisting in, sponsoring, or providing financial, material, or technological support for, or financial or other services to or in support of, the IRGC-QF.

Makki Kazim ‘Abd Al Hamid Al Asadi and Muhammed Hussein Salih Al Hasani

OFAC also is designating Makki Kazim ‘Abd Al Hamid Al Asadi (Makki Kazim Al Asadi) and Muhammed Husayn Salih al-Hasani (al-Hasani), two Iraq-based individuals who helped facilitate IRGC-QF shipments and financial operations via SWRC.  Both individuals and Abu Mahdi al-Muhandis received commission payments for contracts with SWRC.

Makki Kazim Al Asadi has acted as an intermediary to facilitate IRGC-QF shipments destined for Iraq, and has helped the IRGC-QF access the Iraqi financial system to evade sanctions.  Makki Kazim Al Asadi is being designated pursuant to E.O. 13224 for assisting in, sponsoring, or providing financial, material, or technological support for, or financial or other services to or in support of, the IRGC-QF.

Muhammed Hussein Salih Al Hasani is the authorized agent and representative of SWRC, which he registered in Iraq in 2013.  He has signed weapons contracts for SWRC.

Al Hasani is being designated pursuant to E.O. 13224 for acting for or on behalf of SWRC.

Sanctions Implications

As a result of today’s action, all property and interests in property of these targets that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC.  OFAC’s regulations generally prohibit all dealings by U.S. persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of blocked or designated persons.

In addition, persons that engage in certain transactions with the individuals and entities designated today may themselves be exposed to sanctions or subject to an enforcement action.  Furthermore, unless an exception applies, any foreign financial institution that knowingly facilitates a significant transactions for any of the individuals or entities designated today could be subject to U.S. sanctions.

View identifying information related to today’s action.

(Source: US Treasury Dept)

By Omar Sattar for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News

As more factions within Iraq’s Popular Mobilization Units (PMU) are being designated as terrorists by the US administration on account of their close ties with the Iranian side, Tehran is moving toward pulling the Iraqi file from the Islamic Revolutionary Guard Corps (IRGC) and leaving it with the Foreign Ministry, local reports say.

This reported shift in Iranian policy would seek to address a number of critical concerns — none more important, perhaps, than protecting the PMU, which is striving to repurpose itself as a fully-fledged security institution, especially after Washington explicitly told Iranian authorities that supporting militias in Iraq must come to end as part of 12 requirements outlined by Secretary of State Mike Pompeo in November for the lifting of US sanctions.

Click here to read the full story.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) took action today to target four Hizballah-affiliated individuals who lead and coordinate the group’s operational, intelligence, and financial activities in Iraq.

Specifically, OFAC designated Shibl Muhsin ‘Ubayd Al-Zaydi, Yusuf Hashim, Adnan Hussein Kawtharani, and Muhammad ‘Abd-Al-Hadi Farhat as Specially Designated Global Terrorists (SDGTs) pursuant to Executive Order (E.O.) 13224, which targets terrorists and those providing support to terrorists or acts of terrorism.

“Hizballah is a terrorist proxy for the Iranian regime that seeks to undermine Iraqi sovereignty and destabilize the Middle East.  We are targeting terror facilitators like Al-Zaydi who smuggle oil for Iran, raise funds for Hizballah, and send fighters to Syria for the IRGC-Qods Force on behalf of Qasem Soleimani,” said Sigal Mandelker, Under Secretary of the Treasury for Terrorism and Financial Intelligence.

“Treasury’s concerted actions aim to deny Hizballah’s clandestine attempts to exploit Iraq to launder funds, procure weapons, train fighters, and collect intelligence as a proxy for Iran.  This administration will impose severe consequences on anyone assisting Hizballah and their global support networks, and those who engage in business relationships with these terrorists expose themselves to serious sanctions risk.”

These designations follow the signing into law on October 25, 2018, of the Hizballah International Financing Prevention Amendments Act of 2018, which reinforces the U.S. Government’s efforts to protect the international financial system by targeting Hizballah’s supporters, financial networks, and those that facilitate and enable its destabilizing activities worldwide.

Today’s designations specifically target individuals enabling Hizballah’s activities that undermine security and stability in Iraq, and carry significant risks for those attempting to conduct business with Hizballah globally.  Today’s action continues Treasury’s historic level of Hizballah-related designations, which have reached record numbers in 2018.

Treasury’s actions today again highlight the degree to which Hizballah operates as a clandestine, terrorist arm of the Iranian regime.  On November 5, 2018, in its largest ever single-day action targeting the Iranian regime, OFAC sanctioned over 700 individuals, entities, aircraft, and vessels.  This action completed the re-imposition of U.S. nuclear-related sanctions that were lifted or waived under the Joint Comprehensive Plan of Action (JCPOA).

The individuals designated today are subject to secondary sanctions pursuant to the Hizballah Financial Sanctions Regulations, which implements the Hizballah International Financing Prevention Act of 2015.  Pursuant to this authority, OFAC can prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account by a foreign financial institution that knowingly facilitates a significant transaction for Hizballah.

All property and interests in property of those persons designated today that are subject to U.S. jurisdiction are now blocked, and U.S. persons are generally prohibited from engaging in transactions with them.

Shibl Muhsin ‘Ubayd Al-Zaydi (Al-Zaydi)

Al-Zaydi was designated for acting for or on behalf of the Islamic Revolutionary Guard Corps–Qods Force (IRGC-QF), and assisting in, sponsoring, or providing financial, material, or technological support for, or financial or other services to or in support of, Hizballah.

Al-Zaydi has served as a financial coordinator between the IRGC-QF and sectarian armed groups in Iraq and assisted in facilitating Iraqi investments on behalf of IRGC-QF Commander Qasem Soleimani, whom OFAC designated on October 11, 2011, for acting for or on behalf of the IRGC-QF.  Al-Zaydi has also coordinated the smuggling of oil from Iran on behalf of Iran, the smuggling of oil into Syria on behalf of Iran, and has sent Iraqi fighters to Syria allegedly at the IRGC-QF’s request.  Al-Zaydi has appeared publically with IRGC-QF Commander Qasem Soleimani at least four times.

Al-Zaydi has maintained close business ties to Hizballah officials and Hizballah financier Adham Tabaja (Tabaja).  These activities have included providing protection for companies in Iraq allegedly financed by Hizballah and facilitating the movement of Hizballah funding into Iraq for investments.  Al-Zaydi has also worked with senior Hizballah officials to transfer large sums of money to Lebanon to help fund Hizballah’s participation in the Syrian civil war.

Moreover, Al-Zaydi has transferred large sums of money to Tabaja and worked with OFAC-designated Muhammad Al-Mukhtar Kallas to facilitate the movement of bulk cash from Iraq to Lebanon on Tabaja’s behalf.  OFAC designated Tabaja on June 6, 2015, for acting for or on behalf of Hizballah.  Tabaja maintains direct ties to senior Hizballah officials and Hizballah’s operational component, the Islamic Jihad, and holds properties in Lebanon on behalf of the group.

In addition, Al-Zaydi is a partner and founder of Global Cleaners S.A.R.L., which OFAC designated on October 20, 2016, as an SDGT pursuant to E.O. 13224 for being owned or controlled by Tabaja.  Also, since its founding in 2014, Al-Zaydi has been the Secretary General of an Iran-aligned Iraqi sectarian armed group.  This armed group primarily operates in Iraq, but has also dispatched fighters to Syria, and its members have trained in Iran and with Hizballah in Lebanon.

Yusuf Hashim (Hashim)

Hashim was designated for acting for or on behalf of Hizballah.

Hashim oversees all Hizballah-related operational activities in Iraq and is in charge of protecting Hizballah interests in Iraq.  Additionally, Hashim arranges for the protection of Tabaja inside of Iraq.

Hashim has also managed Hizballah’s relations with sectarian armed groups in Iraq, including the coordination of the deployment of fighters to Syria.

Adnan Hussein Kawtharani (Kawtharani)

Kawtharani was designated for assisting in, sponsoring, or providing financial, material, or technological support for, or financial or other services to or in support of, Hizballah.

Kawtharani facilitates business transactions for Hizballah inside Iraq and has attended meetings in Iraq with sectarian armed groups and Hizballah officials.  Kawtharani has also been involved in securing a significant source of funding for Hizballah, and has served as the right hand man for his brother and senior Hizballah member Muhammad Kawtharani, whom OFAC designated on August 22, 2013, pursuant to E.O. 13224, for being in charge of Hizballah’s Iraq activities and working on behalf of Hizballah leadership to promote the group’s interests in Iraq, including Hizballah efforts to provide training, funding, political, and logistical support to Iraqi sectarian armed groups.

Further, as of 2016, Kawtharani worked to obtain a weapons contract in order to raise funds for Hizballah fighters.

Kawtharani is also a partner in the company Global Cleaners S.A.R.L.

Muhammad ‘Abd-Al-Hadi Farhat (Farhat)

Farhat was designated for acting for or on behalf of Hizballah.

Farhat has been involved in advising sectarian armed groups in Iraq on behalf of Hizballah.  As of 2017, Farhat was tasked with collecting security and intelligence information in Iraq and subsequently providing reports to senior Hizballah and Iranian leadership.  Farhat has been involved in a project to analyze and report on the Iraqi security situation for Hizballah and the IRGC-QF.

View identifying information on the individuals designated today.

(Source: OFAC)