ERBIL, Kurdistan Region of Iraq – The Baghdad-based International Development Bank on Friday rejected US Treasury allegations that it helped Iran access US dollars and maintained ties to Iranian government entities and Iran-aligned militia groups, a day after Washington imposed sanctions on the bank.

“While we categorically reject the claims made in the statement, we confirm that the information and allegations upon which they were based are incorrect,” the bank said.

The US Treasury Department said Thursday that the bank “provides financial facilitation services and U.S. dollar access for Iran” and “maintains ties to Iranian government entities and Iran-aligned militia groups.” The department also accused the bank of using “Iranian capital to conduct business.”

The sanctions are part of Operation Economic Outcast, a US initiative launched by Treasury Secretary Scott Bessent in August to target third parties accused of facilitating Iranian oil exports and supporting the country’s shadow economy.

The bank said that, if given “the opportunity to present the necessary facts, documentation, and clarifications, it will correct this perception and demonstrate the bank's true standing,” adding that it was prepared to cooperate with the Central Bank of Iraq (CBI) and the US Treasury Department.

The US Treasury has worked with the CBI for years to tighten oversight of Iraqi banks amid concerns about banking violations, particularly the transfer of US dollars to entities affiliated with Tehran that are subject to sanctions.

“We will work through official and legal channels to address this matter, clarify the facts, and defend the bank's reputation, position, and the rights of all associated parties,” the bank said.