Iraq: Issawi Acquitted of Terror Charges, Awaiting Trial in Corruption Links

Ex-Iraqi Finance Minister Rafi al-Issawi attends an anti-government demonstration in Ramadi, west of Baghdad, March 1, 2013.  Photo by REUTERS/Ali al-Mashhadani.
Ex-Iraqi Finance Minister Rafi al-Issawi attends an anti-government demonstration in Ramadi, west of Baghdad, March 1, 2013. Photo by REUTERS/Ali al-Mashhadani.
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Iraq: Issawi Acquitted of Terror Charges, Awaiting Trial in Corruption Links

Ex-Iraqi Finance Minister Rafi al-Issawi attends an anti-government demonstration in Ramadi, west of Baghdad, March 1, 2013.  Photo by REUTERS/Ali al-Mashhadani.
Ex-Iraqi Finance Minister Rafi al-Issawi attends an anti-government demonstration in Ramadi, west of Baghdad, March 1, 2013. Photo by REUTERS/Ali al-Mashhadani.

Iraq’s Supreme Judicial Council has acquitted former Finance Minister Rafi al-Issawi from terrorism-related charges, for which he had been sentenced to death in absentia, forcing him to flee in 2013.

Issawi’s dispute with former Prime Minister Nuri al-Maliki began after Iraqi authorities arrested nine of his guards on terrorism charges, in light of demonstrations in Ramadi against the government's policies at the time.

He was released Tuesday on bail, the Council announced in a statement, adding that his objection to the charges against him were in line with provisions of Article (247) of the Criminal Procedure Law.

“A date has been set to hold an open trial,” the statement read, pointing out that the court will review evidence in the case and discuss it with the administrative and investigative authorities in the presence of the accused, the defense attorney and the parties that filed the complaint.

Legal expert Ahmed al-Abadi, also Issawi’s lawyer, told Asharq Al-Awsat that “under Iraq’s law, rulings issued against the accused in absentia are cancelled as soon as he surrenders. He is put on trial anew.”

“Issawi said he was ready to appear before Iraq’s judiciary because he knew he was innocent.”

In regards to the other changes against Issawi, Abadi said a lawmaker paid the former minister’s bail, and he is awaiting the next trial in July on charges related to financial and administrative corruption.

Meanwhile, dozens protested the court’s decision and organized a sit-in outside the Council’s headquarters.

Political figures from the Fatah bloc, State of Law Coalition and Hikma movement said Issawi’s return is part of a political deal that paves the way for the return of all those wanted by the Iraqi judiciary, including former vice president Tariq al-Hashemi, upon external pressure.

Prominent Sunni leader, Atheel al-Nujaifi, who also faces charges, told Asharq Al-Awsat that accusing Issawi in the first place was “an unrealistic and unbelievable issue.”

“The cases fabricated against him were not based on any objective evidence,” he stressed.

He noted that Issawi’s acquittal was expected, stressing that it would spark rage among some Sunni leaders, who have taken advantage of his absence to appear in the political scene.



Lebanon Bans Dealing with Hezbollah Financial Entity

A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo
A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo
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Lebanon Bans Dealing with Hezbollah Financial Entity

A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo
A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo

Lebanon's central bank has banned banks and brokerages from dealing with a Hezbollah-affiliated financial institution, according to a circular, a sign of the group's diminished sway over state affairs since its devastating war with Israel.

Keeping up military pressure on the Iran-backed group, Israel on Tuesday launched some of its heaviest airstrikes since a ceasefire in November, saying it hit training camps and weapons depots in east Lebanon. A security source in Lebanon said 12 people were killed, five of them Hezbollah fighters, Reuters reported.

Hezbollah has faced mounting pressures since the war, including financial ones.

In the circular, dated July 14 and reviewed by Reuters, Banque du Liban prohibited all licensed financial institutions in Lebanon from dealing directly or indirectly with unlicensed entities and listed Hezbollah's Al-Qard Al-Hassan as an example.

The US Department of Treasury imposed sanctions on Al-Qard Al-Hassan in 2007, saying Hezbollah used it as a cover to manage "financial activities and gain access to the international financial system".

Bolstered by its powerful arsenal, Hezbollah had long exercised decisive influence over Lebanese state affairs, but it was unable to impose its will in the formation of a post-war government in February.

Al-Qard Al-Hassan, founded in 1983, describes itself as a charitable organisation which provides loans to people according to Islamic principles that forbid interest. Israel struck some of its branches during its war with Hezbollah last year.

Operating as a not-for-profit organisation under a licence granted by the Lebanese government, it has more than 30 branches, mostly in southern Lebanon and the Bekaa Valley.

SHADOW ECONOMY

A Lebanese official said the central bank move had been in the works for months, and reflected US pressure on Lebanon to take action against Hezbollah's financial wing.

Nassib Ghobril, chief economist at Byblos Bank, said Lebanese banks were already careful to avoid dealing with Al-Qard Al-Hassan because it is under US sanctions.

"The important point is that finally the authorities are addressing the shadow economy in Lebanon, which is the real problem," he said, adding that authorities had long failed to address its "toxic effects".

In June, the European Commission included Lebanon in an updated list of high-risk jurisdictions presenting strategic deficiencies in their national anti-money laundering and countering the financing of terrorism.

Last year, global financial crime watchdog FATF placed Lebanon on its "grey list" of countries under special scrutiny.