Head of the Popular Mobilisation forces Faleh Al Fayyad speaks during the forty days memorial, after the killing of Iran's Quds Force top commander Qassem Soleimani and Iraqi militia commander Abu Mahdi al-Muhandis in a US air strike at Baghdad airport. Reuters
Head of the Popular Mobilisation forces Faleh Al Fayyad speaks during the forty days memorial, after the killing of Iran's Quds Force top commander Qassem Soleimani and Iraqi militia commander Abu Mahdi al-Muhandis in a US air strike at Baghdad airport. Reuters
Head of the Popular Mobilisation forces Faleh Al Fayyad speaks during the forty days memorial, after the killing of Iran's Quds Force top commander Qassem Soleimani and Iraqi militia commander Abu Mahdi al-Muhandis in a US air strike at Baghdad airport. Reuters
Head of the Popular Mobilisation forces Faleh Al Fayyad speaks during the forty days memorial, after the killing of Iran's Quds Force top commander Qassem Soleimani and Iraqi militia commander Abu Mah

Mixed reactions in Iraq over US blacklisting of Popular Mobilisation Forces chairman Falih Al Fayyadh


Sinan Mahmoud
  • English
  • Arabic

The US Treasury Department decision to sanction the chairman of Iraq’s Popular Mobilisation Forces, an umbrella group of paramilitary troops made up mainly of Iran-backed militias, has drawn mixed reactions in Iraq.

A day after the US designation for Falih Al Fayyadh, who is also a former national security adviser, Iraq’s Foreign Ministry said it was surprised.

“We stress that the decision was an unacceptable surprise,” the ministry said in a statement on Saturday.

It said it “will carefully follow up with the current and new administration in Washington all decisions issued by the US Treasury Department against Iraqi names and work to address this matter.”

The US Treasury Department said on Friday that the designation was prompted by Mr Al Fayyadh’s “connection to serious human rights abuse” during the unprecedented pro-reform protests that broke out in central and southern Iraq in October 2019.

He was part of a “crisis cell” comprised primarily of PMF militia leaders formed in late 2019 to suppress the protests with the support of Iran’s Islamic Revolutionary Guard Corps' Quds Force, it added.

“By directing and supervising the murder of peaceful Iraqi demonstrators, Iran-aligned militants and politicians such as Falih Al Fayyadh have been waging a violent campaign against Iraqi democracy and civil society,” Treasury Secretary Steven Mnuchin said in the statement.

  • A protester stands next to the pictures of protesters who were killed in clashes with security forces during the anti-government protests at Tahrir Square in central Baghdad. EPA
    A protester stands next to the pictures of protesters who were killed in clashes with security forces during the anti-government protests at Tahrir Square in central Baghdad. EPA
  • People hold up a picture of a slain protester as they gather with national flags for a demonstration in Tahrir Square in the centre of Iraq's capital Baghdad. AFP
    People hold up a picture of a slain protester as they gather with national flags for a demonstration in Tahrir Square in the centre of Iraq's capital Baghdad. AFP
  • A demonstrator gestures during a protest to mark the first anniversary of the anti-government protests in Basra, Iraq on October 1, 2020. AP Photo
    A demonstrator gestures during a protest to mark the first anniversary of the anti-government protests in Basra, Iraq on October 1, 2020. AP Photo
  • A protester waves the Iraqi national flag during a demonstration at the Al-Firdus square in central Baghdad. EPA
    A protester waves the Iraqi national flag during a demonstration at the Al-Firdus square in central Baghdad. EPA
  • Demonstrators play the role of detainees as they gather to mark the first anniversary of the anti-government protests at Tahrir Square in Baghdad. Reuters
    Demonstrators play the role of detainees as they gather to mark the first anniversary of the anti-government protests at Tahrir Square in Baghdad. Reuters
  • Protesters walk next to a wall with graffiti near Tahrir square in central Baghdad. EPA
    Protesters walk next to a wall with graffiti near Tahrir square in central Baghdad. EPA
  • Women light candles and pray for the victims of protests at Tahrir Square in central Baghdad. EPA
    Women light candles and pray for the victims of protests at Tahrir Square in central Baghdad. EPA
  • Demonstrators gather to mark the first anniversary of the anti-government protests, in Najaf, Iraq. Reuters
    Demonstrators gather to mark the first anniversary of the anti-government protests, in Najaf, Iraq. Reuters
  • Demonstrators light candles to mark the first anniversary of the anti-government protests in Basra, Iraq. AP Photo
    Demonstrators light candles to mark the first anniversary of the anti-government protests in Basra, Iraq. AP Photo
  • A protester lights candles and prays for the victims of protests at Tahrir Square in central Baghdad. EPA
    A protester lights candles and prays for the victims of protests at Tahrir Square in central Baghdad. EPA
  • Men prepare torches as Iraqi demonstrators gather to mark the first anniversary of the anti-government protests, in Najaf. Reuters
    Men prepare torches as Iraqi demonstrators gather to mark the first anniversary of the anti-government protests, in Najaf. Reuters
  • Protesters carry the Iraqi national flag as they stand on concrete blocks which are used by security forces to block the Al-Jumhuriya bridge, close to Tahrir square in central Baghdad. EPA
    Protesters carry the Iraqi national flag as they stand on concrete blocks which are used by security forces to block the Al-Jumhuriya bridge, close to Tahrir square in central Baghdad. EPA
  • Iraqis carry the Iraqi national flag and chant slogans during a demonstration at Tahrir square in central Baghdad. EPA
    Iraqis carry the Iraqi national flag and chant slogans during a demonstration at Tahrir square in central Baghdad. EPA
  • Protesters wave Iraqi national flags as they gather for a demonstration in Tahrir Square in the centre of Iraq's capital Baghdad. AFP
    Protesters wave Iraqi national flags as they gather for a demonstration in Tahrir Square in the centre of Iraq's capital Baghdad. AFP
  • Iraqi protesters wave the national flag as they gather for a demonstration in Tahrir Square in the centre of Iraq's capital Baghdad. AFP
    Iraqi protesters wave the national flag as they gather for a demonstration in Tahrir Square in the centre of Iraq's capital Baghdad. AFP

Under the sanctions, any property or interests that Mr Al Fayyadh has in the United States will be blocked.

When Iraqi security forces crumbled in mid-2014 as ISIS swept through northern and western Iraq, Shiite volunteers and militias answered a call from the country’s influential Shiite cleric, grand ayatollah Ali Al Sistani, to join the fight. Since then, Iran-backed militias have joined the PMF.

The decision drew mixed reactions from the activists.

"That is a right decision," a female activist told The National, requesting anonymity for her safety. "But it's not enough against a criminal like Al Fayyadh," she added.

“We are eager to see him arrested to be tried for every drop of blood he has shed,” she said.

“He dubbed the October protests as ‘conspiracy’ and played a role in the killing and kidnapping of protesters through the Hashed security service,” she added, using the Arabic name for the PMF.

Others see the move as part of the Iran-US conflict in Iraq.

"The US-Iran conflict on the Iraqi soil takes different forms, sometimes it comes with military actions and sometimes with legal moves,” activist Hashem Al Jabouri said.

Mr Al Jabouri added that the timing of the decision gives the impression that it came as a reply to the arrest warrant issued on Thursday by a Baghdad court against the outgoing US President, Donald Trump, for ordering the killing of Iran’s General Qassem Suleimani and the leader of Iran-backed Iraqi militia Kataib Hezbollah, Abu Mahdi Al Muhandis.

The PMF and militias have also decried Washington’s financial sanctions against figures linked to the Iranian regime.

“We congratulate the friend of the martyrs, the chairman of Hashed Al Shaabi, Falih Al Fayyadh, for joining the honourable people who are considered by the American administration as enemies,” the PMF said in a statement on its Twitter account with a picture for Mr Al Fayyadh brandishing a sword while standing next to Al Muhandis.

The Al Fattah bloc in parliament, which represents the main pro-Iran militias, described the decision as “childish and reckless”.

It called Mr Al Fayyadh a “patriotic figure” and said the sanctions would “further strengthen the Hashed and its leadership”.

Friday’s sanctions are the latest by the US to target Iraqi individuals close to Tehran for their alleged role in quelling the anti-government protesters.

In December 2019, the Treasury Department blacklisted the leader of Asaib Ahl Al Haq militia, Qais Al Khazali, along with two militia leaders.

The previous government and PMF have denied any role in targeting the protesters. The government accused a “third party” of the killings and kidnappings of protesters without identifying it.

When he took office in May, Prime Minister Mustafa Al Kadhimi pledged to investigate the killings. But his government has so far failed to hold anyone to account, offering only promises of justice and financial aid to victims.

Based on statistics released by the government on July 30, at least 560 protesters and members of security forces have been killed, while tens of thousands of others were wounded – many suffering life-changing injuries – since the protests began.

Most of those killed or wounded are protesters, hit by security forces and state-sanctioned militias firing live rounds and military-grade smoke bombs.

ARGYLLE
%3Cp%3EDirector%3A%20Matthew%20Vaughn%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Bryce%20Dallas%20Howard%2C%20Sam%20Rockwell%2C%20John%20Cena%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A
Teri%20Baaton%20Mein%20Aisa%20Uljha%20Jiya
%3Cp%3E%3Cstrong%3EDirectors%3A%3C%2Fstrong%3E%20Amit%20Joshi%20and%20Aradhana%20Sah%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECast%3A%3C%2Fstrong%3E%20Shahid%20Kapoor%2C%20Kriti%20Sanon%2C%20Dharmendra%2C%20Dimple%20Kapadia%2C%20Rakesh%20Bedi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital
Company%20profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Fasset%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2019%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Mohammad%20Raafi%20Hossain%2C%20Daniel%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%3C%2Fstrong%3E%20%242.45%20million%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2086%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Pre-series%20B%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Investcorp%2C%20Liberty%20City%20Ventures%2C%20Fatima%20Gobi%20Ventures%2C%20Primal%20Capital%2C%20Wealthwell%20Ventures%2C%20FHS%20Capital%2C%20VN2%20Capital%2C%20local%20family%20offices%3C%2Fp%3E%0A