Iraq: Reaching an understanding with the United States to restore restricted banks to external communication channels
Baghdad, July 18 (KUNA) -- The Iraqi government announced on Saturday that it has reached a mutual understanding with the United States to restore Iraqi banks that had been restricted to using foreign correspondent banking channels not linked to the US dollar, after they met the approved standards and requirements in the fields of compliance and governance and completed the first phase of the banking sector reform program.
The Iraqi Prime Minister’s Office media desk said in a statement on Saturday that the understanding resulted from meetings held between the Central Bank of Iraq and officials from the US Treasury on the sidelines of Iraqi Prime Minister Ali Al-Zaidi’s visit to Washington.
The statement noted that the understanding also stipulates the re-licensing of those banks to conduct transactions in US dollars once all relevant regulatory procedures and requirements are completed.
The statement quoted the Central Bank of Iraq as indicating that seven banks are currently eligible to return and operate within the non-dollar foreign correspondent banking channel (other currencies), and that they will have the right to subsequently deal in US dollars after passing further stages of compliance and governance requirements.
It pointed out that the Central Bank of Iraq reaffirmed its commitment to continue the comprehensive assessment of all Iraqi banks and to strengthen the supervision and oversight system to ensure sustained compliance with international standards, governance requirements, risk management, and anti-money laundering and counter-terrorism financing measures.
According to the statement, the Central Bank pledged to take appropriate regulatory and supervisory measures against any institution that fails to meet these standards, including restricting or suspending its access to international financial channels or revoking its license, as necessary and in accordance with prevailing legal and regulatory frameworks. (End) A.H.H. / N.S.A.
