ERBIL, Kurdistan Region of Iraq - Iraq’s Popular Mobilization Forces (PMF) will receive their salaries by mid-week through new credit cards issued by Al-Nahrain Islamic Bank, rather than the state-owned Rafidain Bank, the head of the PMF’s finance department said on Saturday, with the move seeking to save the publicly-owned bank from US sanctions.

“The salaries of the Popular Mobilization Forces are secured and will be released mid-week,” Hussein Ismail said in a statement released by the PMF, adding that “the new cards have been printed by the Al-Nahrain Bank instead of the Rafidain Bank.”

Salaries for the month of May have yet to be paid to PMF members, who normally receive their pay mid-month. While Iraqi officials say the crisis may soon be resolved, other voices claim that direct US pressure caused the delay and warn of broader consequences for Iraq’s banking sector.

The commander of the Abbas Combat Division, Maytham al-Zaidi, said the US Treasury was directly responsible for the delay in PMF salaries. In remarks reported by The New Region earlier on Saturday, Zaidi said the US Treasury had informed the company managing PMF salaries that it must either withdraw from the process or face sanctions.

Zaidi blamed some PMF officials for failing to quickly respond to the issue. “The funds are secured, but the disbursement is facing problems,” he said, warning that “any company handling PMF salaries would face US sanctions.”

Mustafa Sanad, an Iraqi MP close to the PMF, said in a statement on Thursday that the salaries have been deposited into the fighters’ electronic payment cards but claimed that “an external interference has deactivated the cards.”

US Congress members have launched several initiatives in recent months to curb Iranian influence on Iraq, calling for the cessation of all security assistance to Iraq and the imposition of terrorist designations on several armed factions who are part of the Iraqi state security apparatus due to their affiliation with Iran, including the PMF.

In March, US President Donald Trump addressed a letter to Iranian Supreme Leader Ayatollah Ali Khamenei, pressing Tehran for talks over the nuclear issue. The letter reportedly also included a direct request to dissolve armed groups in Iraq, specifically the PMF.

Since July 2023, the US has escalated pressure on Iraq’s banking sector, targeting institutions suspected of facilitating dollar transfers to Iran. Dozens of Iraqi banks have been barred from opening dollar accounts or conducting international dollar transfers accordingly.

The US move, aimed at curbing currency smuggling to Tehran and limiting financing for Iran-backed proxies, forced the sanctioned banks to operate solely within Iraq. Financial services such as the use of international credit cards were immediately restricted.