U.S. Efforts to Pressure Iraq’s Rafidain Bank Over PMF Case Using Ansar Allah Allegations

This issue was raised during the April 29 Iraqi-American summit in Washington, attended by Dr. Michael Faulkender, U.S. Deputy Treasury Secretary; Fuad Hussein, Iraq’s Foreign Minister and Deputy Prime Minister; and Nazar Al-Khairallah, Iraq’s Ambassador to the U.S.

According to the meeting minutes, U.S. officials warned that Rafidain Bank must cease all financial ties with Ansarallah and relocate its Sana’a branch to Aden—the seat of Yemen’s UN-recognized government.

On the other hand, Iraqi Foreign Minister Fuad Hussein emphasized during the meeting that Iraq only engages with Yemen’s official government and that Ansarallah has no access to Iraq’s financial system. He also pledged to personally follow up to ensure no transactions are conducted with the group.

Dr. Sadeq Ali Hassan, spokesperson for Iraq’s embassy in Washington, stated in a letter to Fox Business that “claims about Rafidain Bank processing payments for Ansarallah are completely false.”

He added: “There is no banking correspondent relationship with Yemeni financial institutions, and due to prevailing political, security, and logistical conditions, it is operationally impossible to conduct any cash or digital transactions within or outside Yemen’s financial sector.”

According to the embassy’s statement, “Rafidain Bank’s Sana’a branch has been completely closed since 2017, and under the directive of the bank’s general management and coordination with Iraq’s central bank, all financial activities in Yemen have been permanently suspended. The branch holds no liquidity, lacks SWIFT access, and has no operational infrastructure.”

When asked about accounts linked to PMF—designated by the U.S. as a terrorist group supported by Iran—the Iraqi embassy responded: “Rafidain Bank no longer holds any PMF-related accounts. All such accounts and payrolls have been officially transferred to Al-Nahrain Islamic Bank and are under Iraqi government oversight. The Sana’a branch has no involvement or activity in this matter.”

U.S. Congressman Joe Wilson condemned the situation and stated he would push to reduce Iraq’s budget during upcoming discussions. He also urged the U.S. Treasury to sanction Rafidain Bank.

Michael Knights, senior fellow at the Washington Institute and expert on Iraqi military and security affairs, told Fox Business: “Since February 2025, Congress has been calling for sanctions on Rafidain Bank due to its alleged role in facilitating large-scale money transfers to Iran and its allied groups. This has placed Rafidain at serious risk, as many members of Congress are familiar with its name. However, no sanctions have been imposed so far.”

Fox Business, citing an Iraqi source familiar with the April meeting, claimed: “Rafidain is Iraq’s most opaque bank and has never undergone external auditing.”

The source also alleged: “Rafidain funds PMF projects and provides unsecured loans to militias. If it refuses transparency and audit requirements, the U.S. should cut its access to dollars.”

The Fox Business report suggests that the narrative linking Rafidain Bank to Ansarallah is primarily aimed at pressuring Iraq and the bank to accept U.S. conditions. Notably, according to The Wall Street Journal, the U.S. has already sanctioned 14 Iraqi banks for aiding Iran and other sanctioned entities in the Middle East.

In conclusion, it appears that the U.S. and its allies are attempting to weaken PMF and other resistance groups by restricting their financial resources, ultimately pushing them toward dissolution and reduced influence.

Source:
https://www.foxbusiness.com/fox-news-world/iraqi-state-bank-accused-processing-payments-houthi-terrorists-who-disrupt-red-sea-commerce
https://kurdistantv.net/fa/news/235333