Iraq, the US discuss measures taken against Iraqi banks
The Central Bank of Iraq (CBI). Photo: CBI press office
Baghdad (IraqiNews.com) – The Iraqi Ambassador to the United States, Nizar Al-Khairallah, discussed the measures taken against Iraqi banks.
The Iraqi Embassy in Washington mentioned in a statement that Al-Khairallah met with the US Department of the Treasury’s Under Secretary for Terrorism and Financial Intelligence, Brian Nelson, to discuss the measures that were taken against Iraqi banks and their effects on the growth of the banking sector and government economic reforms, the Iraqi News Agency (INA) reported.
The Iraqi official also met with the US Assistant Secretary of State for Energy Resources, Geoffrey Pyatt, where they reviewed strategies to strengthen bilateral relations between Iraq and the United States, focusing on ways to attract US energy companies to invest in the Iraqi market and take advantage of flared gas.
Last July, the United States barred 14 Iraqi banks from conducting US dollar transactions as part of a crackdown on transferring US currency to Iran and other sanctioned countries.
The step highlights the ongoing efforts to lessen Iran’s access to international financial networks.
Iraq barred eight local commercial banks from carrying out transactions in US dollars, reducing fraud, money laundering, and other illicit uses of US cash.
The banks are prohibited from participating in the daily US dollar auction held by the Central Bank of Iraq (CBI), which is the primary source of hard currency for Iraq and the focus of an American campaign against the smuggling of money into Iran, according to Reuters.
In late January, the US Treasury Department identified Al-Huda Bank as a foreign financial institution with primary money laundering concerns.
The Financial Crimes Enforcement Network (FinCEN) also issued a finding and a regulation that would cut off Al-Huda Bank from the American financial system by forbidding domestic financial institutions and agencies from opening or keeping a correspondent account for or on behalf of Al-Huda Bank.
The US Treasury Department said in a statement that Al-Huda Bank and its foreign supporters, such as Iran and its proxies, siphon off money that would otherwise go toward supporting lawful commerce and the ambitions of the Iraqi people to become economically self-sufficient.
Nelson said that Iraq has made significant progress in rooting out illicit activity from its financial system, but unscrupulous actors continue to seek to take advantage of the Iraqi economy to raise and move money for illicit activity.