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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 29th February 2024).

Please click here to view a table of listed companies and their associated ticker codes.

*Selling price of the dollar from banks and non-bank financial institutions to the final beneficiary

**Selling price of the dollar by the CBI to the banks

Iraq Stock Exchange

• A cross transaction occurred on 5.1 bn shares of Al Mustashar Islamic Bank (BMUI) on Feb. 26, valued at IQD5.1 bn and corresponding to 2.1% of BMUI's capital.
• A cross transaction occurred on 13.4 bn shares of National Islamic Bank (BNAI) on Feb. 29, valued at IQD6.7 bn and corresponding to 4.4% of BNAI's capital.
• The ISC has approved the request of Arabia Islamic Bank (BAAI) to have a two-month extension period to add the new shares resulting from the capital increase through a 20% rights issue to reach IQD300.0 bn starting from Feb. 6, 2024.
• The ISC has approved the request of Al-Mosul for Funfairs (SMOF) to have a two-month extension period to add the new shares resulting from the capital increase through a 10% bonus issue to reach IQD1.65 bn starting from Feb. 11, 2024.
• The ISC has approved the request of National Household Furniture Industry (IHFI) to have a four-month extension period to add the new shares resulting from the capital increase through a 100% rights issue to reach IQD3.32 bn starting from Feb. 15, 2024.
• Al-Ahlyia for Agricultural Production (AAHP) invited its shareholders to receive their cash dividends for the fiscal year ending Mar. 31, 2023 at its headquarters located in Karrada. The company decided in its recent AGM (Oct. 10) to distribute IQD0.02 cash dividend per share, corresponding to a 2.3% dividend yield.

Stocks that resumed / will resume trading:

• National Company for Tourism Investment (HNTI) resumed trading on Feb. 28 after holding its postponed AGM on Feb. 22 in which they discussed and approved renting of Al Modif Restaurant, postponing the rent of Al Sadeer Building, and postponing the investment in Al Amara Land.
• Al-Mansour Hotels (HMAN) will resume trading on Mar. 3 after holding its AGM on Feb. 26 in which they discussed and approved 2022 annual financial statements and decided to distribute IQD0.1528 cash dividend per share, corresponding to a 0.4% dividend yield. The opening price will be IQD42.360 per share.

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 22nd February 2024).

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*Selling price of the dollar from banks and non-bank financial institutions to the final beneficiary

**Selling price of the dollar by the CBI to the banks

Iraq Stock Exchange

• Two cross transactions occurred on 10.1 bn shares of Al Mustashar Islamic Bank (BMUI) on Feb. 20 and Feb. 21, valued at IQD10.1 bn and corresponding to 4.0% of BMUI's capital.
• Subscription on the capital increase of Cihan Bank for Islamic & Finance (BCIH) through an 8.3% rights issue and an 11.3% bonus issue, increasing from IQD255.0 bn to IQD305.0 bn, ended on Feb. 18.
• ISX announced that on Feb. 20, 2024, the deposit operations for the first issuance of reconstruction bonds will begin in the deposit center. The bonds will be launched for trading starting Mar. 19, 2024 on the bond platform.
• On February 20, the Iraq Stock Exchange (ISX) signed a contract for electronic payment methods and POS services with Tadabul Electronic Payment Company (an Iraqi company established under the Companies Law), which is part of the requirements for financial and technical development in Iraq and the advancement of financial transactions with society in providing financial services.
• Rehab Karbala (HKAR) invited its shareholders to subscribe to 450 mn shares starting Feb. 20 from the capital increase to IQD7.95 bn through a 6% rights issue. The subscription period is no less than 30 days and no more than 60 days.
• The AGM of National Company for Tourism Investment (HNTI) has been postponed to Feb. 22 due to a lack of quorum.
• Kurdistan International Islamic Bank (BKUI) will hold its AGM on Mar. 2 to discuss and approve 2022 annual financial statements and dividend distribution. The company had already been suspended from trading by ISX on July 26, 2023, due to not disclosing its financial statements.
• The location of the General Administration and the main branch of Asia Al Iraq Islamic Bank (BAIB) has changed by moving to the new building owned by the bank which is located in Baghdad (Yarmouk, Adjacent to Al-Mansour district).

Stocks that resumed / will resume trading:

• Iraqi for Seed Production (AISP) resumed trading on Feb. 18 after holding its two AGMs on Nov. 26 and Jan. 25 in which they discussed and approved 2021 annual financial statements, electing four original and four alternative board members, and decided to distribute IQD1.0 cash dividend per share, corresponding to an 8.7% dividend yield.
• Original shares of AL-Wiaam for Financial Investment (VWIF) resumed trading on Feb. 21 after holding its AGM on Feb. 17 in which they discussed and approved 2018 until 2022 annual financial statements, increasing the paid-in capital from IQD2.0 bn to IQD5.0 bn through a 150% rights issue, and electing seven original and seven alternative board members.
• Original shares of Economy Bank (BEFI) resumed trading on Feb. 22 after holding its AGM on Feb. 14 in which they discussed and approved increasing the paid-in capital from IQD250.0 bn to IQD300.0 bn through a 15.6% rights issue and a 4.4% bonus issue.

Stocks that were suspended / will be suspended from trading:

• ISX suspended trading of Al-Mansour Hotels (HMAN) starting Feb. 21 due to the AGM that will be held on Feb. 26 to discuss and approve 2022 annual financial statements and dividend distribution.

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 16th February 2024).

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*Selling price of the dollar from banks and non-bank financial institutions to the final beneficiary

**Selling price of the dollar by the CBI to the banks

Iraq Stock Exchange

• Two cross transactions occurred on 14.4 bn shares of Al Mustashar Islamic Bank (BMUI) on Feb. 12 and Feb. 13, valued at IQD14.4 bn and corresponding to 5.7% of BMUI's capital.
• On Monday, the Iraqi Securities Commission (ISC) announced that cash payments are accepted via electronic payment methods, while revealing a plan to list electronic payment companies on the stock market this year. (INA)
• ISX requested Babil Animal & Vegetable Production (ABAP) to provide its AGM minutes for the meeting held on Dec. 11, 2023.
• Iraqi Date Processing and Marketing (IIDP) fulfilled ISX's request to explain why the prices touched the higher limit on Feb. 5 and Feb. 7. The company disclosed that there were no fundamental events or new matters that affected the price of the shares.
• Rehab Karbala (HKAR) invited its shareholders to subscribe on 450 mn shares starting Feb. 20 from the capital increase to IQD7.95 bn through 6% rights issue. The subscription period is no less than 30 days and no more than 60 days.

Stocks that resumed / will resume trading:

• Original shares of Al Masherq Al-Arabi Islamic Bank (BAMS) resumed trading on Feb. 14 after holding its postponed AGM on Feb. 11 in which they discussed and approved increasing the paid-in capital from IQD250.0 bn to IQD300.0 bn through 20% rights issue.
• Iraqi for Seed Production (AISP) will resume trading on Feb. 18 after holding its two AGMs on Nov. 26 and Jan. 25 in which they discussed and approved 2021 annual financial statements, electing four original and four alternative board members, and decided to distribute IQD1.0 cash dividend per share, corresponding to an 8.7% dividend yield. The opening price will be IQD10.440 per share.

Stocks that were suspended / will be suspended from trading:

• ISX suspended trading of Economy Bank (BEFI) starting Feb. 11 due to the AGM that will be held on Feb. 14 to discuss and approve increasing the paid-in capital from IQD250.0 bn to IQD300.0 bn through 15.6% rights issue and a 4.4% bonus issue.
• ISX suspended trading of Modern Chemical Industries (IMCI) starting Feb. 11 due to the AGM that will be held on Feb. 14 to discuss and approve 2022 annual financial statements.
• ISX suspended trading of National Company for Tourism Investment (HNTI) starting Feb. 12 due to the AGM that will be held on Feb. 15 to discuss and approve renting of Al Sadeer Building, renting of Al Modif Restaurant, and investing in Al Amara Land.
• ISX suspended trading of AL-Wiaam for Financial Investment (VWIF) starting Feb. 13 due to the AGM that will be held on Feb. 17 to discuss and approve 2018 until 2022 annual financial statements, increasing the paid-in capital from IQD2.0 bn to IQD5.0 bn through 150% rights issue, dividend distribution, and electing seven original and seven alternative board members.
• ISX will suspend trading Iraqi Land Transport (SILT) starting Mar. 3 due to the AGM that will be held on Mar. 6 to discuss and approve electing five original and five alternative board members if a vote is taken in favor of dismissal of current board members.

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 8th February 2024).

Please click here to view a table of listed companies and their associated ticker codes.

*Selling price of the dollar from banks and non-bank financial institutions to the final beneficiary

**Selling price of the dollar by the CBI to the banks

Iraq Stock Exchange

• Two cross transactions occurred on 6.0 bn shares of Al Mustashar Islamic Bank (BMUI) on Feb. 4 and Feb. 7, valued at IQD6.0 bn and corresponding to 2.3% of BMUI's capital.
• Al-Mansour Bank (BMNS) invited its shareholders to subscribe on 40 bn shares starting Feb. 4 from the capital increase to IQD300.0 bn through 16% rights issue and a 4% bonus issue. The subscription period is no less than 30 days and no more than 60 days.
• ISX requested Iraqi Date Processing and Marketing (IIDP) to explain why the prices touched the higher limit on Feb. 5 and Feb. 7.

Stocks that were suspended / will be suspended from trading:

• ISX will suspend trading of Economy Bank (BEFI) starting Feb. 11 due to the AGM that will be held on Feb. 14 to discuss and approve increasing the paid-in capital from IQD250.0 bn to IQD300.0 bn through 15.6% rights issue and a 4.4% bonus issue.
• ISX will suspend trading of National Company for Tourism Investment (HNTI) starting Feb. 12 due to the AGM that will be held on Feb. 15 to discuss and approve renting of Al Sadeer building, renting of Al Modif restaurant, and investing in Al Amara land.
• ISX will suspend trading of AL-Wiaam for Financial Investment (VWIF) starting Feb. 13 due to the AGM that will be held on Feb. 17 to discuss and approve 2018 until 2022 annual financial statements, increasing the paid-in capital from IQD2.0 bn to IQD5.0 bn through 150% rights issue, dividend distribution, and electing seven original and seven alternative board members.

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By John Lee.

Various media sources say that Iraq has banned eight local commercial banks from making transactions in U.S. dollars.

This precludes these banks from taking part in the Central Bank's daily dollar auction.

The banks are reported to be:

• Ashur International Bank for Investment;
• Investment Bank of Iraq;
• Union Bank of Iraq;
• Kurdistan International Islamic Bank for Investment and Development (KIIB);
• Al-Huda Bank;
• Al Janoob Islamic Bank for Investment and Finance;
• Arabia Islamic Bank (Al Arabiya); and,
• Hammurabi Commercial Bank.

Last week, the US Treasury Department sanctioned Al-Huda Bank, and its owner and Chairman, Hamad al-Moussawi, saying that the bank, "serves as a conduit for terrorist financing, as a foreign financial institution of primary money laundering concern."

(Sources: New Arab; Reuters; Shafaq)

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 1st February 2024).

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*Selling price of the dollar from banks and non-bank financial institutions to the final beneficiary

**Selling price of the dollar by the CBI to the banks

Iraq Stock Exchange

• The total number of transactions increased 46% in January compared to December to 19.6 K. The total trading volume of the ISX decreased 29% month-on-month in January to IQD58.8 bn. Excluding the cross transactions, monthly trading volume showed a 13% m/m growth, reaching IQD39.8 bn in January.
• Baghdad Hotel (HBAG) invited its shareholders to receive their cash dividends for the fiscal year 2022 starting Jan. 28. The company decided in its recent AGM (Dec. 24) to distribute IQD0.49 cash dividend per share, corresponding to an 4.4% dividend yield.
• AL- Kindi of Veterinary Vaccines Drugs (IKLV) invited its shareholders, who have not received their cash dividends for previous years, to visit the company's headquarters to receive their dividends.

Stocks that resumed / will resume trading:

• New shares of National Islamic Bank (BNAI), resulting from the capital increase through a 19.9% rights issue to IQD301.0 bn, resumed trading on Jan. 30.
• New shares of Investment Bank of Iraq (BIBI), resulting from the capital increase through a 2.86% bonus issue to IQD257.1 bn, resumed trading on Jan. 30.
• Asiacell (TASC) resumed trading on Feb. 1 after holding its AGM on Jan. 27 in which they discussed and approved electing nine original and nine alternative board members.
• Al Ansari Islamic Bank (BANS) resumed trading on Feb. 1 after holding its AGM on Jan. 25 in which they discussed and approved 2022 annual financial statements.

Stocks that were suspended / will be suspended from trading:

• ISX suspended trading of Al Masherq Al-Arabi Islamic Bank (BAMS) starting Jan. 31 due to the AGM that will be held on Feb. 4 to discuss and approve increasing the paid-in capital from IQD250.0 bn to IQD300.0 bn through 20% rights issue.
• ISX will suspend trading of Modern Chemical Industries (IMCI) starting Feb. 11 due to the AGM that will be held on Feb. 14 to discuss and approve 2022 annual financial statements.
• ISX will suspend trading of Al-Mansour Hotels (HMAN) starting Feb. 21 due to the AGM that will be held on Feb. 26 to discuss and approve 2022 annual financial statements and distributing IQD0.5 cash dividend per share.

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By John Lee.

The US Treasury Department has sanctioned Iraq's Al-Huda Bank, and its owner and Chairman, Hamad al-Moussawi.

On Monday, the Department's Financial Crimes Enforcement Network (FinCEN) said the bank, "serves as a conduit for terrorist financing, as a foreign financial institution of primary money laundering concern."

Along with its finding, FinCEN proposed imposing a special measure that would sever the bank from the U.S. financial system by prohibiting domestic financial institutions and agencies from opening or maintaining a correspondent account for or on behalf of Al-Huda Bank.

In parallel, the Treasury's Office of Foreign Assets Control (OFAC) said that Al-Moussawi, "maintains relationships with, and launders money for, the IRGC-QF and Kata'ib Hizballah."

It added:

"He received guidance from the IRGC-QF to establish Al-Huda Bank to conduct money laundering operations for Kata'ib Hizballah, which has a prominent role in laundering money for the IRGC-QF. Al-Moussawi has used partially witting, unaffiliated individuals to execute the purchase of U.S. dollars during currency auctions held by Iraq's central bank by using their identity documents to circumvent limits on currency purchases. Since its inception, Al-Huda Bank has used forged documents to execute at least $6 billion in wire transfers out of Iraq."

The Central Bank of Iraq (CBI) confirmed the imposition of sanctions, but emphasised that the bank, "did not participate in the foreign currency buy/sell window during the year 2023." It said the bank continues to provide its banking services, refraining from dealing in U.S. dollars and allowing transactions in other foreign currencies.

Full statement from FinCEN:

Today, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) issued a finding and notice of proposed rulemaking (NPRM) that identifies Al-Huda Bank, an Iraqi bank that serves as a conduit for terrorist financing, as a foreign financial institution of primary money laundering concern. Along with its finding, FinCEN proposed imposing a special measure that would sever the bank from the U.S. financial system by prohibiting domestic financial institutions and agencies from opening or maintaining a correspondent account for or on behalf of Al-Huda Bank.

Bad actors like Al-Huda Bank and its foreign sponsors fuel violence that threatens the lives of U.S. and Iraqi citizens alike while diverting funds that could otherwise support legitimate business and the economic aspirations of the Iraqi people. Treasury remains committed to its longstanding shared work with the Government of Iraq to strengthen the Iraqi economy and protect both the U.S. and Iraqi financial systems from abuse.

"Iraq has made significant progress in rooting out illicit activity from its financial system, but unscrupulous actors continue to seek to take advantage of the Iraqi economy to raise and move money for illicit activity," said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. "By identifying Al-Huda Bank as a key money laundering channel for destabilizing terrorist activity by Iran, proposing a special measure that will sever its correspondent banking access, and imposing sanctions on their CEO, we can protect the Iraqi financial system and its legitimate businesses, as well as the international financial system, from abuse by Iran and other illicit actors."

"Evidence available to FinCEN has demonstrated that Al-Huda Bank served as a significant conduit for the financing of foreign terrorist organizations (FTOs)," said FinCEN Director Andrea Gacki. "We will continue to leverage the full range of our authorities to target terrorist financing while simultaneously supporting the legitimate use of the international financial system."

As described in the finding, for years, Al-Huda Bank has exploited its access to U.S. dollars to support designated FTOs, including Iran's Islamic Revolutionary Guard Corps (IRGC) and IRGC-Quds Force (IRGC-QF), as well as Iran-aligned Iraqi militias Kata'ib Hizballah (KH) and Asa'ib Ahl al-Haq (AAH). Moreover, the chairman of Al-Huda Bank is complicit in Al-Huda Bank's illicit financial activities including money laundering through front companies that conceal the true nature of and parties involved in illicit transactions, ultimately enabling the financing of terrorism.

Since its establishment, Al-Huda Bank has been controlled and operated by the IRGC and the IRGC-QF. After establishing the bank, the Al-Huda Bank chairman began money laundering operations on behalf of the IRGC-QF and KH. Additionally, Al-Huda Bank affords access to the U.S. financial system to actors known to use fraudulent documentation, fake deposits, identity documents of the deceased, fake companies, and counterfeit Iraq dinar, providing opportunities to obscure the identities of the transaction counterparties to correspondent banking relationship providers.

To protect U.S. banks from Al-Huda Bank's illicit activity, FinCEN is taking this action pursuant to Section 311 of the USA PATRIOT Act (section 311). Section 311 actions alert the U.S. financial sector to foreign institutions, such as Al-Huda Bank, that are of primary money laundering concern and through the public rulemaking process, if necessary, prevent direct and indirect access to the U.S. financial system. FinCEN has proposed a rule that would impose special measure five, which would prohibit domestic financial institutions and agencies from opening or maintaining a correspondent account for or on behalf of Al-Huda Bank.

This finding and NPRM are issued today alongside complementary Treasury actions to disrupt funding for Iran-aligned terrorist groups. Treasury's Office of Foreign Assets Control (OFAC) designated Hamad al-Moussawi, the owner and chairman of Al-Huda Bank, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF. Previously, on November 17, 2023, OFAC designated six key individuals affiliated with KH following the group's attacks against United States personnel and partners in Iraq and Syria. On January 22, 2024, OFAC designated three additional key individuals affiliated with KH, a business used by KH to generate revenue and launder money, as well as an Iraqi airline that the IRGC-QF and its proxies in Iraq used to transport fighters, weapons, and money to Syria and Lebanon. Additionally, since the brutal attacks against Israel in October, OFAC has imposed five rounds of sanctions targeting Hamas-linked operatives and financial facilitators.

SECTION 311 SPECIAL MEASURES

Section 311 grants the Secretary of the Treasury authority, upon finding that reasonable grounds exist for concluding that one or more financial institutions operating outside of the United States is of primary money laundering concern, to require domestic financial institutions and domestic financial agencies to take certain "special measures." The five special measures set out in section 311 are safeguards that may be employed to defend the United States financial system from money laundering and terrorist financing risks. The Secretary may impose one or more of these special measures in order to protect the U.S. financial system from such threats. Through special measure one, the Secretary may require domestic financial institutions and domestic financial agencies to maintain records, file reports, or both, concerning the aggregate amount of transactions or individual transactions. Through special measures two through four, the Secretary may impose additional recordkeeping, information collection, and reporting requirements on covered domestic financial institutions and domestic financial agencies. Through special measure five, the Secretary may prohibit, or impose conditions on, the opening or maintaining in the United States of correspondent or payable-through accounts for or on behalf of a foreign banking institution, if such correspondent account or payable-through account involves the foreign financial institution found to be of primary money laundering concern. The authority of the Secretary to administer the Bank Secrecy Act, including, but not limited to, section 311, codified at 31 U.S.C. § 5318A, has been delegated to the Director of FinCEN.

The NPRM as submitted to the Federal Register is currently available here. Written comments on the NPRM may be submitted within 30 days of publication of the NPRM in the Federal Register.

Full statement from OFAC:

Today, the U.S. Department of the Treasury is using powerful tools to protect the Iraqi and international financial system from abuse by terrorist financiers, fraudsters, and money launderers. Treasury is issuing a finding and notice of proposed rulemaking (NPRM) that identifies Al-Huda Bank, an Iraqi bank that serves as a conduit for terrorist financing, as a foreign financial institution of primary money laundering concern. Along with its finding, the Financial Crimes Enforcement Network (FinCEN) proposed a rule that would sever the bank from the U.S. financial system by prohibiting domestic financial institutions and agencies from opening or maintaining a correspondent account for or on behalf of Al-Huda Bank. In addition, the Office of Foreign Assets Control (OFAC) is imposing sanctions on the bank's owner.

Al-Huda Bank and its foreign sponsors, including Iran and its proxy groups, divert funds that could otherwise support legitimate business and the economic aspirations of the Iraqi people. These bad actors fuel violence that threatens the stability of Iraq and the lives of U.S. and Iraqi citizens alike. Treasury remains committed to its longstanding shared work with the Government of Iraq to strengthen the Iraqi economy and protect both the U.S. and Iraqi financial systems from abuse.

"Iraq has made significant progress in rooting out illicit activity from its financial system, but unscrupulous actors continue to seek to take advantage of the Iraqi economy to raise and move money for illicit activity," said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. "By identifying Al-Huda Bank as a key money laundering channel for destabilizing terrorist activity by Iran, proposing a special measure that will sever its correspondent banking access, and imposing sanctions on its owner, we can help protect the Iraqi financial system and its legitimate businesses, as well as the international financial system, from abuse by Iran and other illicit actors."

"Evidence available to FinCEN has demonstrated that Al-Huda Bank served as a significant conduit for the financing of Foreign Terrorist Organizations," said FinCEN Director Andrea Gacki. "We will continue to leverage the full range of Treasury authorities to target terrorist financing while simultaneously supporting the legitimate use of the international financial system."

Last week, OFAC designated the Iraqi airline Fly Baghdad and its CEO for providing assistance to Iran's Islamic Revolutionary Guard Corps (IRGC) Qods Force (IRGC-QF) and its regional proxy groups by transporting fighters and weapons. OFAC also designated three leaders and supporters of Kata'ib Hizballah and a business that served as a cover for Kata'ib Hizballah to move and launder funds. On November 17, OFAC designated six individuals affiliated with KH following the group's attacks against United States personnel and partners in Iraq and Syria.

AL-HUDA BANK FINDING

As described in the finding, for years, Al-Huda Bank has exploited its access to U.S. dollars to support designated FTOs including the IRGC, as well as Iran-aligned Iraqi militia groups including Kata'ib Hizballah and Asa'ib Ahl al-Haq. Moreover, the chairman of Al-Huda Bank is complicit in Al-Huda Bank's illicit financial activities including money laundering through front companies that conceal the true nature of and parties involved in illicit transactions, ultimately enabling the financing of terrorism.

Since its establishment, Al-Huda Bank has been controlled and operated by the IRGC and the IRGC-QF. After establishing the bank, the Al-Huda Bank chairman began money laundering operations on behalf of the IRGC-QF and Kata'ib Hizballah. Additionally, Al-Huda Bank affords access to the U.S. financial system to actors known to use fraudulent documentation, fake deposits, identity documents of the deceased, fake companies, and counterfeit Iraqi dinar, providing opportunities to obscure the identities of the transaction counterparties to correspondent banking relationship providers. Of note, the chairman of Al-Huda Bank also is the bank's owner and president of the board of directors.

To protect U.S. banks from Al-Huda Bank's illicit activity, FinCEN is taking this action pursuant to section 311 of the USA PATRIOT Act. Section 311 actions alert the U.S. financial sector to foreign institutions, such as Al-Huda Bank, that are of a primary money laundering concern and through the public rulemaking process, prevent direct and indirect access to the U.S. financial system.

The proposed imposition of special measure five would prohibit domestic financial institutions and agencies from opening or maintaining a correspondent account for or on behalf of this foreign financial institution.

The full NPRM as submitted to the Federal Register is available here. Written comments on the NPRM may be submitted within 30 days of publication of the NPRM in the Federal Register.

OFAC SANCTIONS

Today, OFAC designated Hamad al-Moussawi, the owner and president of the board of directors of Iraq's Al-Huda Bank, for his support to the IRGC-QF, including through support for its proxy militia groups in Iraq. Al-Huda Bank has exploited its access to U.S. dollars to support foreign terrorist groups, including the IRGC-QF and Kata'ib Hizballah. Today's actions underscore the IRGC-QF's abuse of the Iraqi banking sector to gain access to the U.S. dollars and the international financial system.

Al-Moussawi maintains relationships with, and launders money for, the IRGC-QF and Kata'ib Hizballah. He received guidance from the IRGC-QF to establish Al-Huda Bank to conduct money laundering operations for Kata'ib Hizballah, which has a prominent role in laundering money for the IRGC-QF. Al-Moussawi has used partially witting, unaffiliated individuals to execute the purchase of U.S. dollars during currency auctions held by Iraq's central bank by using their identity documents to circumvent limits on currency purchases. Since its inception, Al-Huda Bank has used forged documents to execute at least $6 billion in wire transfers out of Iraq.

Hamad al-Moussawi is being designated pursuant to Executive Order 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF.

Sanctions Implications

As a result of today's OFAC action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, in general any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC's regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.

In addition, non-U.S. financial institutions and other persons that engage in certain transactions or activities with sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person.

The power and integrity of OFAC sanctions derive not only from OFAC's ability to designate and add persons to the Specially Designated Nationals and Blocked Persons List (SDN List), but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC's Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

Click here for identifying information on the individual designated today.

(Sources: US Treasury Department; Central Bank of Iraq)

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 25th January 2024).

Please click here to view a table of listed companies and their associated ticker codes.

*Selling price of the dollar from banks and non-bank financial institutions to the final beneficiary

**Selling price of the dollar by the CBI to the banks

Iraq Stock Exchange

• A cross transaction occurred on 24.0 bn shares of Iraqi Islamic Bank (BIIB) on Jan. 21 valued at IQD19.0 bn and corresponding to 9.6% of BIIB's capital.
• Baghdad Hotel (HBAG) invited its shareholders to receive their cash dividends for the fiscal year 2022 starting Jan. 28. The company decided in its recent AGM (Dec. 24) to distribute IQD0.49 cash dividend per share, corresponding to an 4.4% dividend yield.
• Al-Mansour Bank (BMNS) invited its shareholders to subscribe to 40 bn shares starting Feb. 4 from the capital increase to IQD300.0 bn through a 16% rights issue and a 4% bonus issue. The subscription period is no less than 30 days and no more than 60 days.
• Al Janoob Islamic Bank (BJAB) has completed the legal procedures for the capital increase through a 104% rights issue to IQD510.0 bn.

Stocks that were suspended / will be suspended from trading:

• ISX suspended trading of Al Ansari Islamic Bank (BANS) starting Jan. 22 due to the AGM that will be held on Jan. 25 to discuss and approve 2022 annual financial statements.
• ISX suspended trading of Asiacell (TASC) starting Jan. 23 due to the AGM that will be held on Jan. 27 to discuss and approve electing nine original and nine alternative board members.

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 18th January 2024).

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*Selling price of the dollar from banks and non-bank financial institutions to the final beneficiary

**Selling price of the dollar by the CBI to the banks

Iraq Stock Exchange

• Cihan Bank for Islamic & Finance (BCIH) invited its shareholders to subscribe on 21.2 bn shares starting Jan. 18 from the capital increase to IQD305.0 bn through 8.3% rights issue and 11.3% bonus issue. The subscription period is no less than 30 days and no more than 60 days.
• National Islamic Bank (BNAI) has completed the legal procedures for the capital increase through a 19.9% rights issue to IQD301.0 bn.

Stocks that resumed / will resume trading:

• New shares of Bank of Baghdad (BBOB) from the capital increase through a 20% bonus issue to IQD300 bn resumed trading on Jan. 15.
• Iraqi Islamic Bank (BIIB) resumed trading on Jan. 16 after holding its postponed AGM on Jan. 5. The bank postponed increasing the paid-in capital from IQD250.0 bn to IQD300.0 bn through a 16% rights issue and 4% bonus issue until after the first quarter of 2024.
• Iraqi for General Transportation (SIGT) resumed trading on Jan. 17 after fulfilling its obligations to the ISX regarding the lack of a fixed headquarters.
• Tourist Village of Mosul Dam (HTVM) resumed trading on Jan. 18 after holding its AGM on Jan. 13 in which they discussed and approved 2022 annual financial statements.

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 11th Januarty 2024).

Please click here to view a table of listed companies and their associated ticker codes.

*Selling price of the dollar from banks and non-bank financial institutions to the final beneficiary

**Selling price of the dollar by the CBI to the banks

Weekly News from Iraq 

• Bank of Baghdad (BBOB) invited its shareholders to receive their cash dividends for the fiscal year 2022 through the company's HQ starting Jan. 11. The company decided in its recent AGM (Nov. 22) to distribute IQD0.075 cash dividend per share, corresponding to a 2.0% dividend yield.
• Iraqi for Seed Production (AISP) will hold its AGM on Jan. 25 to discuss and approve electing four original and four alternative board members. The company had already been suspended from trading on Nov. 21 for holding their previous AGM on Nov. 26 where AISP didn't share the AGM minutes with the ISX.
• The head of the Iraqi Securities Commission, Faisal Al-Haimus, met with the Minister of Communications, Hiam Al-Yasiri. During the meeting, the possibility of obligating companies licensed by the ministry to transform into joint-stock companies and list them on the Iraq Stock Exchange was discussed, as well as the possibility of activating and adopting the electronic signature law that was issued in 2012, with a focus on accelerating correspondence processes and facilitating procedures. (NINA)
• Modern Animal & Agricultural Production (AMAP) fulfilled ISX's request to explain why the prices touched the higher limit on Jan. 3 and Jan. 4. The company disclosed that there were no fundamental events or new matters that affected the price of the shares.
• The ISC sent a letter to all listed companies to disclose their annual financial statements within a period that doesn't exceed 150 days from the end of the company's year with the exception for Mixed Sector Companies, which have a period of no more than one year to disclose its annual financials from the end of the company's year.

Stocks that resumed / will resume trading:

• Iraqi Engineering Works (IIEW) resumed trading on Jan. 8 after holding its AGM on Jan. 3 in which they discussed and approved 2022 annual financial statements.

Stocks that were suspended / will be suspended from trading:

• ISX suspended trading of Tourist Village of Mosul Dam (HTVM) starting Jan. 9 due to the AGM that will be held on Jan. 13 to discuss and approve 2022 annual financial statements.
• ISX will suspend trading of Al Ansari Islamic Bank (BANS) starting Jan. 22 due to the AGM that will be held on Jan. 25 to discuss and approve 2022 annual financial statements.
• ISX will suspend trading of Asiacell (TASC) starting Jan. 23 due to the AGM that will be held on Jan. 27 to discuss and approve electing nine original and nine alternative board members.

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