Official Iraqi television said police arrested the men in the crowded neighborhood of al-Talibiya, in the eastern part of Baghdad.
Iraqi Foreign Minister Hoshiar Zibari has accused all Iraq's neighbors, including Iran, of facilitating the infiltration of Muslim militants into Iraq despite calls by the interim government to curb the traffic.
Zibari was quoted as saying "unfortunately terrorists were still converging on Iraq from those countries," in allusion to neighboring states, Iran, Jordan, Syria, Turkey, Jordan and Saudi Arabia.
In another incident, Iraqi Interior Ministry Director-General Brig. Hussein Ali Kamal announced the arrests of four members of the defunct Baath party suspected of beheading U.S. hostage Nicholas Berg two months ago.