Iraqi authorities have issued a confidential and urgent directive aimed at blocking financial transfers to Lebanon’s Hezbollah and restricting the movement of funds linked to networks associated with the group through Iraqi banks and licensed financial institutions, according to Iraqi sources cited by Al-Modon. 

The measure was issued only hours after a meeting between U.S. President Donald Trump and Iraqi Prime Minister Ali al-Zaidi. A senior Iraqi official described the move as a “green light” from President Trump personally to target what he called Hezbollah’s “shadow finances” as part of efforts to permanently cut off the group’s covert sources of funding.

The directive prohibits any transfers of money to Hezbollah and prevents the circulation of funds belonging to networks allegedly connected to the group through Iraq’s formal financial system.

The development comes as Baghdad moves to tighten oversight of financial networks suspected of operating on behalf of Hezbollah, amid broader efforts to combat corruption and illicit financial activity.

According to the Iraqi official, the decision to target Hezbollah’s financial networks forms part of a new campaign described as a “zero hour” operation by Prime Minister Ali al-Zaidi against what he called “new heads of corruption.”

The official said the Iraqi government appears to have received approval at the highest levels in Washington to take action against these networks, including freezing assets and targeting investments both inside Iraq and abroad.

Iraqi prosecutors are preparing to issue summonses against individuals and pursue financial assets in two Arab countries, including Lebanon, where authorities believe a form of “shadow economy” linked to Hezbollah has developed through indirect and opaque business activities inside Iraq.

The official said these activities involve economic fronts and commercial entities allegedly used to move and invest funds across Iraq, Turkey and several countries in South America.

The Iraqi official said several powerful Iraqi figures who previously held political and security positions could face arrest or raids on their offices as part of a broader corruption investigation.

The move, he said, would proceed regardless of the influence of those figures or their alleged connections to Iran and Hezbollah.

Iraqi security and intelligence services have reportedly gathered information indicating that Hezbollah has built a network of economic fronts inside Iraq, allowing it to operate through companies and businesses that extend beyond Iraqi territory.

The sources said these networks have been used to manage investments and financial activities while avoiding direct links to the organization.

Iraqi sources familiar with the matter told Al-Modon that local banks have begun preparing procedures to freeze funds and prevent transactions involving commercial fronts registered under the names of Iraqi individuals.

According to the sources, the funds are allegedly managed through financial structures controlled by Hezbollah officials responsible for the group’s financial affairs.

The sources said Iraqi authorities possess extensive intelligence on these networks and are operating with full security cooperation from relevant Iraqi agencies.

The expected measures would allow authorities to restrict access to assets suspected of being connected to Hezbollah-linked financial operations.

The Iraqi government is also considering restrictions on Lebanese individuals and companies linked to Hezbollah that conduct economic and financial activities involving Iraq, according to the sources.

Among the sectors facing increased scrutiny are Iraqi and Lebanese companies involved in organizing religious visits by Lebanese citizens to Iraq.

Authorities reportedly suspect that some religious travel operations may have purposes beyond pilgrimage activities, particularly companies that organize multiple trips each year.

The planned restrictions would include tighter monitoring of these companies and their financial operations.

The Iraqi measures represent a significant escalation in efforts to target Hezbollah’s financial infrastructure outside Lebanon.

For years, Hezbollah has relied on regional networks, commercial activities and financial channels across the Middle East and beyond to support its operations.

The latest steps by Baghdad, according to Iraqi officials, aim to disrupt those networks by restricting access to formal banking channels and targeting the economic structures believed to support them.