Overview of Recent Developments in Iraqi Banking
Clarification on Iraq’s Banking Sector Following Sanctions
In light of the recent announcement regarding the sanctions imposed on five Iraqi banks, Aziz Ahmad, the Deputy Director of the Prime Minister’s Office, asserted that these institutions are not connected to the “My Account” project. This initiative is recognized as the comprehensive financial framework developed by the Kurdistan Regional Government.
Ahmad commented, “We have seen news about the prohibition of dollar transactions in several Iraqi banks, which indicates that customers holding accounts at these banks will face restrictions when using their cards abroad, along with other limitations.” He emphasized that the banks affiliated with the “My Account” initiative would not be impacted by these sanctions, as they are undergoing official audits concerning their revenue and expenditure compliance.
As reported on Sunday, the Central Bank has identified an additional five domestic banks subject to an embargo on dollar transactions. This decision follows discussions with officials from the U.S. Treasury aimed at curbing dollar smuggling and addressing other infractions within the banking sector.
The “My Account” project, which is intended to support the banking payroll system, currently includes eight banks within the Kurdistan Regional Government framework. Ahmad noted that “In the coming weeks, two internationally recognized banks will join the existing eight banks participating in the My Account initiative.”
As of early this month, the latest updates from the “My Account” project indicate the installation of 550 ATMs across 200 locations. Approximately 370,000 employees are now equipped with bank cards that allow them to receive their salaries directly through this system.
