Iraq Bans Five More Banks from US Dollar Transactions to Combat Financial Crimes
Iraq's central bank has imposed a ban on five local banks from engaging in US dollar transactions, intensifying efforts to curb money laundering, dollar smuggling, and other violations.
This decision follows meetings in Dubai between Iraqi and US officials, including the US Treasury and Federal Reserve. Iraq, a key ally of both the US and Iran, relies on US goodwill for access to its oil revenues and finances.
The banned banks include:
* Al-Mashreq Al-Arabi Islamic Bank
* United Bank for Investment
* Al Sanam Islamic Bank
* Misk Islamic Bank
* Amin Iraq For Islamic Investment and Finance
While these banks can continue operations in other currencies, the ban significantly restricts their ability to conduct international transactions.
This move comes amid increasing pressure on Iraq to address financial crimes. A recent investigation revealed a sophisticated fuel oil smuggling network generating billions of dollars for Iran and its proxies.
The current Iraqi government has faced criticism for its ties to Iran-backed entities, including those involved in the financial sector. Western officials have praised efforts by Prime Minister Sudani to implement reforms, but pressure is expected to intensify under the Trump administration's "maximum pressure" policy towards Iran.
The central bank ban also includes three payment services firms: Amawl, AL-Saqi Payment, and Aqsa Payment.