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International Development Bank for Investment and Finance
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International Development Bank for Investment and Finance

Baghdad-based private Iraqi bank designated by OFAC in October 2026

OFAC designated the International Development Bank for Investment and Finance on 15 October 2026. Treasury says Iranian companies set up the Baghdad bank to supply Iran with dollars and that it sends profits to Iran each month.

Last refreshed: 18 October 2026

Key Question

How did a Baghdad bank end up feeding US dollars to Iran?

Timeline for International Development Bank for Investment and Finance

#181 15 Oct

Designated by OFAC on 15 October

Iran Conflict 2026: US blacklists an Iraqi bank over Iran
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Background

On 15 October 2026 OFAC designated the International Development Bank for Investment and Finance, which trades as the Iraq Development Bank, under Executive Order 13902. It issued General Licence FF the same day, letting counterparties wind down dealings with the bank until 30 October. The move came 15 days after the last US troops flew out of Erbil.

Treasury says Iranian companies set the bank up to supply Iran with dollars, that it abused its access to the now-dissolved US dollar wire auction, and that it sends profits to Iran each month in dollars. It says Bank Melli's Iraqi branch moved its capital to the bank when the branch closed. The bank's owners received it from a dual Iranian-Iraqi financier working for the IRGC-Quds Force, Treasury says.

The designation formed part of Operation Economic Outcast, Treasury's 15 October action against Iranian shadow banking.

Common Questions
Why did the US sanction the Iraq Development Bank?
Treasury says the bank gives Iran access to US dollars, abused the now-dissolved dollar wire auction and sends profits to Iran monthly. OFAC designated it on 15 October 2026.Source: https://home.treasury.gov/news/press-releases/sb0660
Is the Iraq Development Bank the same as the International Development Bank for Investment and Finance?
Yes. OFAC lists Iraq Development Bank as an alias of the Baghdad-based International Development Bank for Investment and Finance.Source: https://ofac.treasury.gov/recent-actions/20261015
What is the deadline to wind down dealings with the Iraq Development Bank?
OFAC General Licence FF authorises wind-down transactions until 12:01 a.m. US eastern daylight time on 30 October 2026.Source: https://ofac.treasury.gov/media/937246/download?inline
Source Material

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 18 October 2026. Editorial standards.