The Central Bank of Iraq has banned five local banks from dealing in dollars to combat money laundering, affecting foreign transactions and also including three electronic payment companies.
Reuters reported today, Sunday, that Two informed sources said that the Central Bank Iraq has decided to ban dealing in dollars for 5 additional local banks, as part of efforts to combat money laundering and smuggling. Dollar.
The move came after meetings in Dubai last week between officials from the Central Bank of Iraq and officials from the US Treasury and the US Federal Reserve.
Anti-Money Laundering Meetings
The measures come after the Central Bank of Iraq banned eight other banks from dealing in dollars last year. The move aims to strengthen financial oversight and combat various financial violations, in coordination with the US side.
Impact of the decision on banks and the economy
According to the sources, the banks banned by the decision of the Central Bank of Iraq will continue to operate and will be able to conduct transactions, but in currencies other than the US currency. However, the decision limits their ability to conduct transactions in dollars, which hinders most operations that take place outside Iraq.
Iraq is the second largest oil producer among OPEC countries, and it relies heavily on its reserves of more than $100 billion, which requires close cooperation with Washington to ensure access to oil revenues.
Affected banks and companies
The affected banks include: Al-Mashreq Arab Islamic Bank, United Investment Bank, Al-Sanam Islamic Bank, Misk Islamic Bank, and Amin Al-Iraq Bank for Islamic Investment and Finance. The ban also included 3 electronic payment companies: Amwal Company, Al-Saqi Company, and Al-Aqsa Company.
