Iraq Revises Decision to Unfreeze Funds, Removes Hezbollah and Houthis from Terror List Due to 'Technical Error'

Iraq's committee overseeing the freezing of assets tied to terrorism announced on Tuesday an official amendment to Decision No. (61) of 2025, removing Hezbollah and Yemen's Houthi group from its sanctions list. The committee emphasized that their prior inclusion was made "accidentally."

In a statement, the committee clarified, "The Iraqi side's approval was limited to the inclusion of units and individuals solely connected to ISIS and Al-Qaeda," adding that the inclusion of other groups occurred due to the list being published prior to revisions.

The committee further noted, "There was an error in the inclusion of the names of Hezbollah and the Houthis."

The original decision was published in the Iraqi Official Gazette (Issue 4848) on November 17, 2025, following a request from Malaysia and in accordance with UN Security Council Resolution No. (1373) from 2001, aimed at freezing the assets of entities and individuals associated with ISIS and Al-Qaeda.

The initial release of the list last month sparked significant controversy and sharp criticism from Iraqi factions, while international media outlets like Reuters noted that the move "would likely be welcomed in Washington and could increase pressure on Tehran."

Iraqi officials confirmed last Thursday that Iraq would remove the names of the two groups from the list after it was determined that their inclusion was unintentional.

This amendment follows a week of political and media controversy in Iraq, with pro-Iran factions labeling the initial inclusion as "confusing," while the revised decision resolves the conflicting official stance of Iraq regarding the listed entities.