Iraq Economic News and Points To Ponder Tuesday Afternoon 8-5-25

Source: 5 Iraqi Banks Subject To Sanctions For Dollar Violations
 
August 4, 2025  Al-Mustaqilla/- An informed source revealed in a statement to Al-Mustaqilla that  five Iraqi banks have recently been subjected to punitive measures by the Central ank for violations related to their failure to comply with regulations governing transactions in US dollars.
 
This comes as part of an escalating regulatory campaign aimed at  regulating banking performance and
 combating currency smuggling. 

The source, who requested anonymity, explained that among these banks is the Bank of Baghdad,
 whose case has been one of the most prominent banking issues raised recently, after it was onfirmed that it was banned from dealing in dollars  due to violations related to  foreign transfers and  suspicious transactions.

The source added that  some of the banks subject to sanctions also face additional measures due to their  involvement in unregulated financial activities or weak adherence to audit and compliance mechanisms.

He noted that the sanctions vary from one bank to another and include a  ban on dealing in dollars,
 freezing certain activities,  or  direct oversight by the Central Bank.
 
Despite the actual issuance of these sanctions, the source noted that the Central Bank has not officially announced the names of all the banks affected by the sanctions,  raising questions about the reasons for this secrecy, especially given the impact these measures have had on the  financial market and   citizens' confidence in banking institutions.
 
This development comes at a time when the  Iraqi banking sector is suffering from internal and external pressures,  due to  US sanctions and restrictions on the dollar, in addition to challenges related to money laundering and the  financing of foreign networks.
 
Experts are calling on the government and the Central Bank to   be more transparent in announcing details of banking sanctions, to  ensure public confidence and  reassure customers about the safety of the financial sector.    https://mustaqila.com/مصدر-5-مصارف-عراقية-تخضع-لعقوبات-بسبب-م/  

Source: The Central Bank Of Iraq Has Suspended The Bank Of Baghdad From Dealing In Dollars.
 
August 3, 2025 Al-Mustaqilla/- An informed source reported that the Central Bank of Iraq has issued a decision to suspend the Bank of Baghdad from dealing in US dollars,  in a new move aimed at  strengthening oversight of financial transactions and   combating manipulation in the foreign exchange market. 
 
The source, who requested anonymity, told Al-Mustaqilla on Sunday that the decision was part of a series of measures taken by the Central Bank to curb currency smuggling and  stabilize the dinar-dollar exchange rate,  following the detection of violations related to   transfer mechanisms and   foreign transactions.
 
Bank of Baghdad  is one of the largest private banks in Iraq and    has a prominent presence in the banking market.  This decision will have a significant impact on banking and commercial operations, especially in light of the challenges facing the country's financial system.

No official comment has yet been issued by the bank concerned, but it is expected that this move will be followed by similar decisions against other banks and financial institutions that may be proven to be involved in financial violations or abuses in the use of the US dollar.

It is noteworthy that the Central Bank of Iraq has recently intensified its oversight measures on  foreign currency auctions and  external transfers, in an attempt  to  control the market and  restrict  speculation and  smuggling, which directly impact the country's economic stability.    https://mustaqila.com/مصدر-المركزي-العراقي-يوقف-مصرف-بغداد-ع/   

Source Reveals: Bank Of Baghdad Remains Sanctioned Despite Official Denials
 
August 4, 2025   Al-Mustaqilla/- In a new development that has sparked controversy in banking and media circles, the  Bank of Baghdad  issued an official statement today denying recent reports regarding sanctions related to its dealings in US dollars. The statement  affirmed that its banking operations are   proceeding normally and  in accordance with the regulations approved by the Central Bank of Iraq. 

The statement read,  "The bank continues to provide its services as usual and regularly, and all banking operations are carried out in accordance with instructions issued by the relevant authorities, with no decisions prohibiting it from dealing in dollars."
 
Despite this official denial,  a well-informed source within the bank, who declined to be named, revealed to Al-Mustaqilla on Monday that   the bank had indeed been subjected to punitive measures recently.  

He confirmed that the penalty relates to its failure to fully comply with compliance instructions for dollar transactions,  making it one of a number of banks against which similar measures have been taken. 

The source added that   the penalty was imposed a few days ago, noting that the bank is still working to resolve the related cases, in coordination with the Central Bank of Iraq and   relevant international bodies.
 
This discrepancy between the official statement and leaks from within the bank reflects a state of ambiguity regarding the  nature of the sanctions and   their impact on ongoing financial transactions,
 
particularly in light of the increasing challenges facing the Iraqi banking sector due to US restrictions on foreign transfers.
 
Observers are anticipating further clarification from the Central Bank of Iraq to resolve the controversy,
 especially with increasing reports of a list of other banks that may be subject to similar measures in the coming days.    https://mustaqila.com/مصدر-يكشف-مصرف-بغداد-لا-يزال-معاقباً-رغ/ 

The Bank Of Baghdad Denies Suspending Dollar Transfers. 

Uses Economy News – Baghdad  The Bank of Baghdad denied on Monday reports circulating about a suspension of dollar transfers,  stressing that the bank continues to provide its banking services as usual and regularly.
 
The bank clarified in a statement received by Al-Eqtisad News that all banking operations, including foreign transfers in dollars, are conducted in accordance with the controls and instructions issued by the Central Bank of Iraq and  in line with standards of financial compliance, governance, and transparency.
 
The statement added that the  Bank of Baghdad is fully committed to implementing the instructions of the Central Bank of Iraq, calling on the  media and the public to exercise accuracy and  refrain from circulating rumors or unreliable information.  https://economy-news.net/content.php?id=58343 

A Company Disguised As Advertising Carries Out Money Laundering And Dollar Smuggling Operations.
 
Economy   2025-08-04 | 1,155 views  Alsumaria News – Local  Since its establishment in 2008, an advertising company run by "J.M."  has continued to operate normally,  indifferent to the corruption it carries out, as if it were conducting legal business.
 
Reports indicate that this company,  which has its official headquarters in central Baghdad,  has been involved in  money laundering and  illegally smuggling foreign currency,  specifically US dollars, out of Iraq over the past few years.
 
This has led to official investigations being opened at multiple levels.
 
Since its founding, the company has established itself as a leader in producing promotional materials,
organizing advertising campaigns, and  purchasing advertising space in newspapers, on screens, and in the digital space.
 
The company quickly  achieved success and  secured major contracts with telecommunications companies,  private banks,  media organizations, and even   government agencies.  According to unofficial data,
 
the company's annual revenues in some years amounted to millions of dollars.
 
But what raised suspicion was the  disproportionately large scale of some of the financial transactions, along with what was described as a  "sudden and unjustified expansion" in the company's assets, including  luxury offices, new cars, and
    unclear investments in  real estate and  foreign trade.
 
According to government sources and some media leaks, the  company's general manager , "J.K.", faces serious charges of money laundering. It is believed that the company used its commercial fronts to launder funds from illicit sources, through    fake deals and  inflated or fictitious invoices.

In addition, it is suspected that the company was involved in  purchasing large quantities of dollars from the black market and   transferring them abroad via local and foreign money transfer and exchange companies,  under the cover of alleged import and marketing activities.
 
It is also suspected that the company was tampering with government contracts, as   there are suspicions of concluding fictitious advertising deals with government agencies  in exchange for  commissions and   political favors.  Informed sources reported that
 
Official reactions
 
government investigative bodies have already begun investigating the company and its director.
 
The Central Bank has also restricted the company's dealings with several local banks
     after indications emerged of illogical financial transactions in its accounts. 
 
The source confirmed that "the Anti-Money Laundering Agency is monitoring the case in coordination with international agencies to monitor foreign transfers, some of which are believed to have taken place via the UAE, Turkey, Lebanon, and Jordan."
 
No final court ruling has yet been issued against the company's director or his company, but preliminary proceedings indicate  "significant complexity in the case, especially given the potential partners abroad."
 
This issue has cast a shadow over other advertising companies in Iraq,   as regulatory authorities have begun scrutinizing the records of major companies,   examining their sources of funding, and the  mechanisms by which they contract with public and private entities.
 
There have also been calls from within Parliament for stricter laws regarding  advertising company licensing and  monitoring of their finances.
 
The case of this company, whose name will be revealed later, remains one of the most prominent cases that combine the  economy,  media, and  corruption in Iraq.
 
If the charges against its director are proven, it will set a dangerous precedent for exploiting the media as a front for   money laundering and  smuggling.
 
This case  reveals the fragility of financial oversight in some sectors and  underscores the need for a more transparent and fair system for managing the Iraqi economy,  especially in light of the challenges facing the country.   
https://www.alsumaria.tv/news/economy/535947/تقوم-بعمليات-غسيل-أموال-وتهريب-الدولار-شركة-تتخفى-بقناع-الإعلانات  

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