US forum urges sanctions on Iraqi officials backing Iran-linked armed groups

WASHINGTON, United States — WASHINGTON — A US-based think tank has urged Washington to sanction Iraqi government officials who award contracts and funding to Iran-backed armed groups, arguing that decades of sanctions on the groups' leaders, companies and banks have failed to cut off their finances. The Middle East Forum report said the problem lies not only with the armed groups themselves but also with state institutions that provide them with contracts, funds and legal cover. It called on the US administration to target government officials who extend administrative approvals and tenders to sanctioned entities. The report focused on Al-Muhandis, the largest economic arm of the armed groups, established by an Iraqi Cabinet decree. It said the company received $76 million in state funds and was allocated more than $305 million from the investment budget, was granted over 1.2 million dunums of land along the Saudi border, and was awarded a fiber optic contract by Iraq's Ministry of Communications. The groups' economic network also spans tourism firms, restaurants, health centers, universities and private schools, which the report said are used to launder money in response to tighter Central Bank of Iraq dollar-window controls. It cited Asaib Ahl al-Haq member Ali al-Shammari's clinic as one vehicle for laundering proceeds into political activity. The Middle East Forum warned that without institutional reform in Baghdad, US sanctions would remain symbolic.