Iraq Economic News and Points to Ponder Sunday Afternoon 2-16-25
US Praises Iraqi Financial Sector Reform Measures
February 16, 2025 Baghdad - Ibtihal Al Arabi The meeting of the Central Bank of Iraq with the American side and international auditing companies resulted in positive results, denying that some Iraqi banks were subject to international sanctions. A statement received by Al-Zaman yesterday said that (the first quarterly meetings of the current year, with the US Treasury Department and the US Federal Reserve Bank,
which were held in the United Arab Emirates with the participation of international auditing and consulting companies, were crowned with praise for the steps taken by the bank and the government in reforming the banking sector),
and continued that (the most important of these reforms is the development of the cash distribution system for the US dollar in Iraq, which they considered the most controlled and controlled system in the world, which limits manipulation and smuggling of the US dollar),
appreciating (the qualitative shift in foreign transfer operations and the steps taken by the Central Bank to address the risks resulting from these operations, which have now risen to the levels of transfer operations carried out by international banks),
and pointed out that (the consulting companies reviewed the plans to reform the government and private banking sector and upgrade them in a manner consistent with international standards and facilitating the involvement of Iraqi banks in the network of financial relations internationally),
and the statement went on to say that (the operations carried out by banks operating in Iraq depend largely on the confidence of international correspondent banks in the Iraqi banking sector,
and we emphasize the need to ensure the adoption of official channels for this The bank to know the latest news and not to transmit incorrect information such as some Iraqi banks being subject to international sanctions and others).
An economic expert revealed that 34 out of 44 banks are now under US sanctions, which constitutes a major crisis in the local banking sector.
The expert, Munir Al-Obaidi, explained in a statement received by (Al-Zaman) yesterday that (34 out of 44 banks are now under US sanctions, which constitutes a major crisis in the local banking sector), adding (the remaining 10 banks are distributed as follows: five of them have foreign capital, two are affiliated with the Kurdistan Region, and only three banks remain entirely Iraqi).
Meanwhile, the Central Bank of Iraq gave banks operating in the country that do not have an account in a bank that deals directly with the American bank, JP Morgan, a deadline of June to settle their electronic payments, threatening to stop them if they do not comply with the decision.
Mustafa Hantoush, a researcher in economic and banking affairs, said in a statement yesterday that (if this decision is implemented, it will lead to limiting the dealings of electronic payment companies in Iraq to Jordanian and Gulf banks, which currently dominate the currency auction with the support of the Central Bank of Iraq),
noting that (electronic payment companies will be forced to open accounts in banks that have dealings with JP Morgan and Citibank, in exchange for closing their accounts in Iraqi banks, whether they are sanctioned or not, which may affect the local banking sector), and Hantoush renewed his call to (reconsider the standards of the Central Bank of Iraq related to building local banks),
stressing (the need to strengthen and develop them to face the challenges resulting from these decisions), and he continued that (so far, the bank’s management has not issued any official statement confirming or denying the validity of this news, which leaves the door open to speculation about the impact of the decision on the banking system in Iraq and its relationship with international banks). LINK
After Meeting With The US Federal Reserve, The Central Bank Denies That Iraqi Banks Are Subject To Sanctions
Economy |- 02/16/2025 Baghdad - Mawazine: The Central Bank of Iraq denied the existence of international sanctions on some Iraqi banks, after media outlets circulated news about sanctions that included dozens of banks in the country.
The Central Bank stated in a statement received by "Mawazine", a copy of it, that "it announced the end of the first quarterly meetings for the year 2025 with the US Treasury and the US Federal Reserve Bank,
which were held in Dubai / United Arab Emirates with the participation of international auditing and consulting firms (EY, K2 Integrity, Oliver Wyman), and the meetings culminated in praise for the steps taken by the Central Bank of Iraq and the Iraqi government in reforming the banking sector,
the most important of which were: the development of the cash distribution system for the US dollar in Iraq, which they considered the most controlled and controlled system in the world, which limits manipulation and smuggling of the US dollar,
in addition to the qualitative shift in foreign transfer operations and the steps taken by the Central Bank of Iraq to address the risks resulting from these operations, which have now risen to the levels of transfer operations carried out by international banks.
The statement confirmed that the consulting firms (EY and Oliver Wyman) reviewed the plans to reform the government and private banking sector and upgrade them in line with international standards and to facilitate the involvement of Iraqi banks in the network of financial relations internationally."
The statement added: "Since the operations carried out by banks operating in Iraq depend largely on the confidence of international correspondent banks in the Iraqi banking sector, we stress the need to ensure that the official channels of this bank are adopted to know the latest news and not to transmit incorrect news such as some Iraqi banks being subject to international sanctions and others." https://www.mawazin.net/Details.aspx?jimare=259609
New US Sanctions Shake Iraqi Banking Sector, Ban Use Of Payment Cards Abroad
02/16/2025 Mawazine News – Economy Iraqi government sources reported on Sunday that Baghdad received an official notification from the US Treasury Department imposing sanctions on five Iraqi banks, in addition to a number of exchange companies, due to their involvement in illegal money transfers inside and outside Iraq, and smuggling dollars to banned entities, most notably the Islamic Republic of Iran.
According to the US notification, the sanctions will not stop there, as the work of other banks is being closely monitored and may face similar measures in the near future.
The new US decision also included imposing a comprehensive ban on the use of Iraqi electronic payment cards outside the country during the next two months, in a move aimed at preventing currency smuggling after suspicious financial movements were monitored by a specialized US team. It is
noteworthy that the US Treasury Department had previously imposed sanctions on 14 Iraqi banks in July 2023, and prevented four other banks from accessing the dollar in November of the same year, and imposed strict restrictions on money transfers in cooperation with the Central Bank of Iraq.
These measures come within the framework of an escalating US policy to control financial transactions in Iraq, amid fears of continued money laundering and currency smuggling, which imposes additional challenges on the Iraqi banking sector and its financial stability. https://www.mawazin.net/Details.aspx?jimare=259611
The Central Bank Of Iraq Announces Positive Results From Its Quarterly Meetings With The American Side
02/16/2025 Mawazine News – Economy The Central Bank of Iraq announced, on Sunday, that its quarterly meetings with the American side and international auditing companies had yielded positive results, denying that some Iraqi banks were subject to international sanctions.
The bank said in a statement received by "Mawazine News" that the first quarterly meetings for the year 2025 with the US Treasury and the US Federal Reserve, which were held in the United Arab Emirates with the participation of international auditing and consulting companies (EY, K2 Integrity, and Oliver Wyman), were crowned with praise for the steps taken by the Central Bank of Iraq and the Iraqi government to reform the banking sector.
He indicated that the most important of these reforms are:
1- The development of the cash distribution system for the US dollar in Iraq, which they considered the most controlled and controlled system in the world, which limits manipulation and smuggling of the US dollar.
2- The qualitative shift in foreign transfer operations and the steps taken by the Central Bank of Iraq to address the risks arising from these operations, which have now risen to the levels of transfer operations carried out by international banks.
3- The consulting firms (EY and Oliver Wyman) reviewed the plans to reform and upgrade the public and private banking sectors in line with international standards and to facilitate the involvement of Iraqi banks in the international financial relations network.
The bank said: "Since the operations carried out by banks operating in Iraq depend largely on the confidence of international correspondent banks in the Iraqi banking sector, we emphasize the need to ensure the adoption of the official channels of this bank to know the latest news and not to transmit incorrect news such as the exposure of some Iraqi banks to international sanctions and others." https://www.mawazin.net/Details.aspx?jimare=259614
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