Ali al-Zaidi, Iraq's prime minister-designate endorsed by US President Donald Trump, owns a bank that was banned by the United States Treasury in 2024 for alleged links to Iran's Islamic Revolutionary Guard Corps (IRGC), The Wall Street Journal reported on Sunday.
Trump's endorsement of the Iraqi businessman is contingent on Ali al-Zaidi curtailing Iranian influence in Iraq, including excluding Iran-backed militias from his potential government, according to the report.
Analysts told the WSJ that this condition was risky for Ali al-Zaidi, given that any action against the militias could result in violence.
The WSJ quoted a Biden administration State Department official, Victoria Taylor, as saying that the militias are "deeply entrenched" in Iraq's government, adding, "it will be a challenging and quite lengthy process to begin to chip away at those groups."
The report cited US officials as saying that Ali al-Zaidi's bank, Al Janoob, had conducted business transactions with Shibl al-Zaidi, sanctioned by the US for his links to the IRGC and Hezbollah.
The Treasury Department said in 2018 that Shibl al-Zaidi served as a financial coordinator between the IRGC Quds Force and Iraqi militias.
In addition, the Treasury believes that Al Janoob has ties to Kataib Hezbollah, a US-designated terrorist group, the WSJ reported.
Al Janoob chairman denies allegations
The bank's chairman, Mazen Ahmed, told the WSJ that the allegations against the bank are false, saying they are "based on rumor and speculation."
Ahmed added that Ali al-Zaidi has not had a direct role in the bank's operations since 2019.
The WSJ reached out to Ali al-Zaidi for comment, who did not respond.
Ali al-Zaidi was appointed Iraq's prime minister-designate in April, 167 days after Iraq's November 2025 election.