Recent analyses and statements emerging from various platforms have raised concerns regarding the U.S. decision to tighten economic sanctions on Iran, with some suggesting potential repercussions for citizens.
It is imperative to emphasize that safeguarding the national economy, financial system, and monetary policy remains a primary focus for Iraq in the face of international or American economic sanctions imposed on certain countries. The Iraqi government, guided by its financial and monetary policies, aims to navigate these challenges without becoming entangled in external pressures.
The U.S. Department of the Treasury, along with global organizations and regulatory bodies, is well aware of Iraq’s situation. The Iraqi economy has endured several crises and challenges, some dating back to years preceding 2023; however, the government and the Central Bank have been proactive in addressing these issues with viable solutions aimed at swift recovery. The Iraqi banking sector is being organized in accordance with international banking standards.
These efforts have yielded positive results throughout 2023 and into 2024, enabling Iraqi banks to establish foreign correspondent accounts that were previously unavailable.
Notable endorsements have come from the Financial Action Task Force (FATF), U.S. Treasury, the International Monetary Fund, and the World Bank, who have commended the Central Bank’s initiatives in addressing areas of concern. These include ensuring the transparency of external transfers, transitioning away from the prior platform, and facilitating direct transactions between local banks and correspondent banks while operating under rigorous supervisory controls. This has ensured that 97% of transfers reach the intended beneficiaries. Furthermore, contracts with internationally recognized consulting firms—such as Ernst & Young, K2, Oliver & Ayman—have been established to enhance banking operations and compliance with global standards, and these companies are actively implementing outlined strategies.
The Iraqi government, in collaboration with the Central Bank, has also initiated significant reform measures, including the automation of the tax and customs systems. Given this diligent commitment to fortifying our financial framework, we want to reassure stakeholders that speculation regarding new sanctions on the banking sector is unfounded and lacks any substantive basis.
To stay updated with the latest economic news, subscribe to our channel on Tilekram
