Iraq Bans Eight Local Banks from U.S. Dollar Transactions

Iraq has implemented a ban on eight local commercial banks from conducting U.S. dollar transactions as part of efforts to mitigate fraud, money laundering, and other illicit uses of U.S. currency.

The move follows a recent visit by a senior U.S. Treasury official and aims to address concerns over currency smuggling to neighboring Iran. The banned banks are now restricted from participating in the Iraqi central bank’s daily dollar auction, a significant source of hard currency for the import-dependent nation.The decision underscores Iraq’s commitment to cracking down on financial misconduct and enhancing compliance with international standards.

The list of banned banks includes Ahsur International Bank for Investment, Investment Bank of Iraq, Union Bank of Iraq, Kurdistan International Islamic Bank for Investment and Development, Al Huda Bank, Al Janoob Islamic Bank for Investment and Finance, Arabia Islamic Bank, and Hammurabi Commercial Bank.

Despite the restrictions, Western officials have praised cooperation with Iraqi Prime Minister Mohammed Shia al-Sudani in implementing economic and financial reforms.

Source: Reuters