Central Bank of Iraq Governor: Seven Banks Reintegrated into the Global Financial System

Following the official visit to the United States of America, and within the framework of ongoing efforts to strengthen bilateral relations between the two countries, the Governor of the Central Bank of Iraq (CBI) held a series of high-level meetings with the U.S. Department of the Treasury.

These meetings resulted in a joint understanding to reinstate restricted Iraqi banks to external non-U.S. dollar correspondent banking channels, provided that they meet the approved standards and requirements in the areas of compliance and governance, and have completed the first phase of the banking sector reform and re-licensing program being implemented by CBI. Banks that succeed in fulfilling the reform and re-licensing requirements will also regain their eligibility to conduct transactions in U.S. dollars upon the completion of all relevant regulatory procedures and requirements.

This understanding falls within the CBI's comprehensive strategy aimed at modernizing the banking sector, enhancing its robustness, and elevating its efficiency, resilience, and competitiveness, thereby contributing to its full integration into the global financial system, strengthening confidence in the Iraqi banking sector, and preparing the necessary environment for its engagement with international financial institutions.

CBI also reaffirmed its commitment to continuing the comprehensive assessment of all Iraqi banks and enhancing the supervisory and oversight framework to ensure sustained compliance with international standards and the requirements of governance, risk management, and anti-money laundering and counter-terrorism financing. CBI will continue to take appropriate supervisory and regulatory measures against any institution that fails to 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.

CBI Governor H.E. Nizar Nasser Hussein also clarified that there are currently (seven) banks eligible to return to operating through the external non-U.S. dollar correspondent banking channel (other currencies), and that they will subsequently have the right to deal in U.S. dollars after passing further stages of compliance and governance requirements.

 

Media Office

July 18, 2026

 

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