US extends sanctions wind-down licence for Iraq Development Bank

WASHINGTON, October 29, 2026 — The US Treasury Department's Office of Foreign Assets Control (OFAC) issued Iran General License FF-1, extending the authorization for transactions ordinarily incident and necessary to winding down dealings with International Development Bank for Investment and Finance, also known as Iraq Development Bank.

The amended licence replaces and supersedes General License FF, issued Oct. 15, 2026, and authorizes qualifying transactions through 12:01 a.m. Eastern Standard Time on Dec. 1, 2026. The authorization covers the bank and entities in which it holds a direct or indirect ownership interest of 50% or more.

Issued under the Iranian Transactions and Sanctions Regulations, 31 CFR Part 560, the licence provides a limited exception to existing sanctions restrictions. It permits transactions necessary to terminate existing dealings with the bank but does not provide a general authorization to resume or establish business relationships.

Any payments to blocked persons under the authorization must be deposited into blocked accounts in accordance with the Iranian Transactions and Sanctions Regulations. The licence does not authorize transactions involving other blocked persons unless separately permitted.

The amendment provides additional time for financial institutions, businesses and counterparties to conclude qualifying transactions involving Iraq Development Bank while maintaining the underlying sanctions restrictions.

Following the expiration of the authorization, transactions involving the bank that are otherwise prohibited under US sanctions will require a separate authorization or applicable exemption.