US Treasury Introduces New Restrictions on Iraqi Banking Sector
In a significant development impacting the Iraqi banking landscape, recent information has emerged regarding upcoming restrictions dictated by the US Treasury. These measures specifically target several private banks and electronic payment companies within Iraq.
According to reliable sources, the forthcoming restrictions will apply to five private banks: East Bank, United Bank, Sanabel Bank, where Iraq, and Musk Bank. Additionally, three electronic payment companies—Money, Storyteller, and Legs—will also be affected. Notably, government banks are not included in these new directives.
While these restrictions focus on private banks and payment companies, they prompt concerns regarding their potential ramifications on the Iraqi economy and its financial interactions with the international banking community. These developments arise at a particularly precarious moment for the Iraqi economy, which is currently grappling with numerous challenges.
In related news, informed sources reported that the Central Bank of Iraq is poised to implement measures that will prevent local banks from transacting in US dollars. This action follows a request from the US Treasury.
Specifically, the Central Bank will bar five local banks from engaging in dollar transactions as part of this compliance initiative. Additionally, three payment service companies will also face similar prohibitions.
The impetus for these measures stems from the US’s concerns over significant cash flow violations and the smuggling of US dollar reserves outside Iraq.
Earlier today, the Central Bank of Iraq officially refuted claims that Iraqi banks are subject to international sanctions, urging stakeholders to rely on formal channels for accurate updates regarding the latest developments.
As these regulations are rolled out, stakeholders will need to closely monitor the impact on Iraq’s economic stability and its ability to engage with global financial systems.
