US urges Iraq’s central bank to address ongoing threats of dollar abuse
Employees walk at the headquarters of the Central Bank of Iraq in Baghdad, Iraq. Photo: Reuters
Baghdad (IraqiNews.com) – A top US Treasury official warned that the Central Bank of Iraq (CBI) must address ongoing threats of dollar abuse at Iraqi commercial banks to prevent further repercussions against the financial sector in Iraq.
According to Reuters, the official talked about fraud, money laundering, and the avoidance of sanctions imposed on Iran as examples.
The statement of the US official took place one day after the US Assistant Secretary of the Treasury Department, Elizabeth Rosenberg, met with the Iraqi Prime Minister, Mohammed Shia Al-Sudani, where they discussed the cooperation between financial institutions in Iraq and the US Treasury Department.
The meeting addressed measures taken by the Iraqi government to undertake financial and banking reforms to reduce corruption in all of its manifestations, according to a statement issued by the Prime Minister’s Office (PMO).
Rosenberg applauded the Iraqi government’s outstanding efforts in implementing financial and banking reforms, which would support Iraq’s attempts to strengthen its sustainable development initiatives and expand its economy.
Last July, US officials said that 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 Wall Street Journal (WSJ) reported.
The ban was imposed by the Treasury Department and the Federal Reserve Bank of New York.
The step highlights the ongoing efforts to lessen Iran’s access to international financial networks.
The primary objective of the US sanctions is to curtail Iran’s ability to access US dollars through Iraqi banks. By targeting these financial institutions, the US hopes to disrupt the flow of funds that could potentially be used by Iran to support activities contrary to US interests, according to a report issued by BNN Breaking.
The report added that the sanctions are part of a wider strategy to apply economic pressure on Iran and prevent the country from engaging in illicit financial transactions that could fund destabilizing activities in the region.