Iraqi state bank begins paying PMF salaries after US disruption on financial channels

Iraq's state-owned Rafidain Bank has announced the release of delayed salaries for members of the Popular Mobilisation Forces (PMF), following mounting public pressure and allegations of US interference in Iraq's financial networks.

The bank's media office confirmed that payments have now been made available across Rafidain branches in Baghdad and other provinces. This follows a two-week delay that left over 200,000 PMF personnel—drawn from more than 70 officially recognised armed factions—without pay, sparking social media campaigns under hashtags such as "Where Are the PMF Salaries?" and "Where Are the Wages?"

This delay marked the first disruption of PMF salary payments since the force was formally recognised by the Iraqi state in 2016 under Law No. 40. PMF fighters are entitled to the same pay and benefits as Iraqi Army soldiers, with salaries typically disbursed via Qi Card, Iraq's largest electronic payment service provider.

While Iraqi officials initially blamed a "technical issue" stemming from a change in payroll systems, PMF figures have pointed to direct US pressure on Iraq's payment infrastructure. Abbas Division commander Maytham al-Zaidi stated in a video message that the Qi Card company had withdrawn from handling PMF salaries after receiving a formal warning from the US Treasury Department, fearing sanctions.

Zaidi accused US institutions of attempting to block PMF salaries to weaken the force and urged Iraqi authorities to revert to manual, cash-based disbursements to avoid further complications. He also criticised the PMF's financial administrators for mishandling the issue.

Supporting his claims, the PMF's financial office issued a statement confirming that payments would soon resume through additional authorised outlets, even on public holidays, while the payroll system transitions from Rafidain Bank to Al-Nahrain Bank. It insisted the delay was due to "technical adjustments" aimed at strengthening financial safeguards, and denied any legal or administrative obstacles to payment.

Mounting fallout

Iraqi MP Moein al-Kadhimi, a member of the parliament's Finance Committee, confirmed to Al-Araby Al-Jadeed, The New Arab's Arabic-language sister publication, that US warnings of potential sanctions pressured Qi Card and Rafidain Bank if they proceeded with disbursing PMF salaries. He warned that the situation could escalate into a political crisis if not resolved quickly.

Similarly, Ali al-Fatlawi, a senior figure in the Fatah Alliance, the political bloc aligned with many PMF factions, said the US Treasury was leveraging Iraq's financial systems to "divide and weaken" its security institutions. "This is a dangerous plan, especially with the upcoming parliamentary elections," he told Al-Araby Al-Jadeed, urging Baghdad to resist external pressure and treat the PMF like any other state force.

Kurdish MP Majid Shingali added that the US views much of the $2.7 billion PMF budget as vulnerable to corruption and misappropriation by Iran-aligned elites, which may have prompted Washington’s scrutiny.

Meanwhile, an adviser to the Iraqi Prime Minister told Al-Araby Al-Jadeed that the US does not recognise the PMF as a legitimate security entity, viewing it instead as a collection of Iranian-aligned militias. He said that if salary transfers remain blocked, the government might resort to direct cash payments from PMF headquarters.

Despite the resumption of payments, uncertainty lingers over future salary cycles. The PMF financial department pledged a return to "normal and regular" payroll operations starting next month, though it remains unclear whether US scrutiny will continue to obstruct Iraq’s payment channels.

Yet, US officials have indirectly acknowledged concerns. In response to a question from Rudaw on Wednesday about alleged pressure on the Iraqi government to block PMF payments, Andy Halus, Media Affairs Adviser at the US Embassy in Baghdad, emphasised the need for financial transparency.

"All financial institutions are obligated, under international standards, to know their customers and their affiliations," Halus said, adding that "strong anti-money laundering and counterterrorism financing controls (AML/CFT) protect financial systems from misuse." He further stated that while the Iraqi government is responsible for answering specific questions regarding payments, the US has consistently supported Iraq, as with other countries, in implementing global financial compliance standards.

Halus also reiterated Washington's "deep concern over Iran-backed armed groups designated as terrorists, which threaten Americans and Iraq's stability."

Political leaders and civil society actors have warned that allowing foreign interference in Iraq’s sovereign payroll processes sets a troubling precedent—one that could further entangle financial policy with geopolitical tensions in the run-up to Iraq's national elections this November.

PMF was founded in June 2014 after a fatwa (a religious call to action) was issued by Ayatollah Ali al-Sistani, the spiritual leader of Iraq's Shia community. Al-Sistani asked young men to step up to fight the Islamic State (IS), the extremist group that tore through Syria before capturing a third of Iraq in the summer of 2014.

PMF militias were officially incorporated into the Iraqi armed forces in 2016. However, some still back Iranian agendas in Iraq and proudly show their loyalty to Iran.