The US Department of the Treasury has announced new sanctions targeting the economic wing of Iraq’s Popular Mobilization Forces (Hashd al-Shaabi), along with several Iraqi companies and businessmen, for allegedly helping Iran evade sanctions and finance militia activities across the region.

Sanctions Target Companies and Businessmen

The Treasury said the sanctions include Mohandis General Contracting, Baladuna Company, and several Iraqi businessmen and bank executives. The US accused them of engaging in arms smuggling, money laundering, and systematic corruption that undermines Iraq’s economy.

“They Helped Iran Evade Sanctions”

According to the Treasury’s statement, the designated entities and individuals “assisted Iran in evading international sanctions and provided support to Iranian-backed groups.” The statement added that Iran relies on Iraqi militia networks to infiltrate state institutions and security agencies, using them to extend its regional influence.

Accused of Looting Iraq’s Wealth

The US Treasury said the sanctioned groups were “responsible for the deaths of American citizens, attacks on US and allied interests, and the plundering of Iraq’s public funds,” accusing them of weakening Iraq’s economy and destabilizing state governance.

Support for the Revolutionary Guards

Mohandis General Contracting, founded by members of the Kataib Hezbollah militia, reportedly operates across Iraq’s construction, agriculture, and industrial sectors, managing the militia’s financial activities. Washington said both Mohandis and Baladuna provide financial and logistical support to Iran’s Islamic Revolutionary Guard Corps (IRGC) and Kataib Hezbollah.

Sanctions Extend to Bank Executives

The Treasury also announced sanctions on three chief executives of Iraqi banks, accusing them of using their positions to funnel money to Iran’s Revolutionary Guards and the Asaib Ahl al-Haq group. The US said the officials exploited Iraq’s financial system to launder money and generate revenue for "Iran-backed militant networks".