Iraqi politicians and observers warn of the potential fallout from a comprehensive review of suspicious financial transactions in Iraq as promised by US envoy Mark Savaya.
Meanwhile, a surprise decision by Iraqi Prime Minister Mohammed Shia al-Sudani, the leading vote-getter in the elections, to relinquish his right to form a government in favor of runner-up Nouri al-Maliki continues to cast a shadow over the leadership of the Coordination Framework, the umbrella alliance of Shiite political forces.
Savaya, who was praised on Wednesday by US President Donald Trump for having done “a great job in Iraq,” announced on Thursday the launch of a comprehensive review of suspicious payments and financial transactions in Iraq.
The review will be conducted in cooperation with the US Treasury Department and the Office of Foreign Assets Control, alongside discussions on potential sanctions targeting networks that undermine financial integrity and finance terrorist activities.
Savaya has not yet made an official visit to Baghdad since assuming his role as presidential envoy to Iraq, although he previously visited the country in a personal capacity. He is of Christian Iraqi origin, and his family left Iraq in the 1990s.
In a statement, Savaya said he was meeting with the US Treasury Department and OFAC to discuss key challenges and reform opportunities in Iraq’s state-owned and private banks, with a particular focus on strengthening financial governance, compliance, and institutional accountability.
According to the statement, both sides agreed to conduct a comprehensive review of records related to suspicious payments and financial transactions involving Iraqi institutions, companies, and individuals linked to smuggling operations, money laundering, and fraudulent contracts and financial projects that fund and enable terrorist activities.
Discussions also included next steps regarding potential sanctions against entities and networks that undermine financial integrity and state authority.
Savaya said relations between Iraq and the United States have never been stronger than they are today under Trump’s leadership.
Iraqi politician and former electricity minister Luay al-Khatteeb told Asharq Al-Awsat that Savaya’s message aligns with statements made by the US chargé d’affaires during his shuttle meetings with political bloc leaders regarding Washington’s official stance should a parliamentary majority vote in favor of undesirable figures.
Al-Khatteeb said the Coordination Framework must act with intelligence, seriousness, and realism by selecting credible figures who exceed US administration expectations and command international respect.
He warned that Iraq’s political scene is deeply unsettled and that the economy is in its worst condition, heading toward collapse if Shiite leaders continue clinging to failed policies and appointing ineffective and internationally unacceptable figures.
“The choices of the Coordination Framework,” he said, “will be the official response and message to the international community - and especially to the US administration - either yielding rewards or exacting a heavy price.”
