The Central Bank of Iraq is ordering all financial institutions within the country to stop all dealings with Al-Bilad Islamic Bank for Investment & Finance PSC, Emirati newspaper The National reported May 17.
The order came after Al-Bilad Islamic Bank and its CEO, Aras Habib Karim, were put on the U.S. Treasury sanctions list, in a bout of new sanctions against organizations linked to Iran. Karim also serves as secretary general of the Iraqi National Congress, a political party within Iraq, and was a candidate in Iraq's recent elections, allied with current Prime Minister Haider Al Abadi, the report noted.
In a statement published on Karim's website, he said, "While we are surprised by the timing of the statement issued by the U.S. Treasury Department, especially before the announcement of the final results of the Iraqi elections, we confirm that we have conclusive evidence refuting this defamation against me and the Islamic Bank." Karim denies all allegations and said he will challenge the designation and provide the relevant evidence to the central bank, according to the report.
The U.S. Treasury, however, said Karim had been sanctioned for aiding fund transfers to the Iranian Islamic Revolutionary Guard and Hezbollah, which the U.S. designates as terrorist organizations.
