Baghdad – INA
The Central Bank of Iraq announced on Saturday that it has reached an agreement with the US Treasury Department to reinstate restricted Iraqi banks to international correspondent banking channels not denominated in US dollars.
A statement from the Prime Minister's Media Office, received by the Iraqi News Agency (INA), stated that "following the official visit of Prime Minister Ali Faleh al-Zaidi and his meeting with the President of the United States, and within the framework of ongoing efforts to strengthen bilateral relations between the two countries, the Governor of the Central Bank of Iraq held a series of high-level meetings with officials at the US Treasury."
The statement added that "these meetings resulted in an agreement to reinstate restricted Iraqi banks to international correspondent banking channels not denominated in US dollars, after they meet the approved standards and requirements in the areas of compliance and governance, and complete the first phase of the banking sector reform and relicensing program implemented by the Central Bank of Iraq. Banks that successfully complete the reform and relicensing requirements will regain their eligibility to conduct transactions in US dollars upon completion of all related regulatory procedures and requirements."
He noted that "this understanding comes within the framework of the Central Bank of Iraq's comprehensive strategy, which aims to modernize the banking sector, enhance its resilience, and improve its efficiency, capacity, and competitiveness, thereby contributing to its full integration into the global financial system, strengthening confidence in the Iraqi banking sector, and creating the necessary environment for its openness to international financial institutions."
According to the statement, the Central Bank of Iraq reiterated "its commitment to continuing the comprehensive evaluation of all Iraqi banks and strengthening the oversight and supervisory system to ensure sustainable compliance with international standards and governance, risk management, and anti-money laundering and counter-terrorism financing requirements." The statement further clarified that the bank "will continue to take appropriate supervisory and regulatory measures against any institution that does not meet these standards, including restricting or suspending its access to international financial channels or revoking its license, whenever necessary and in accordance with applicable legal and regulatory frameworks."