Qi Card Company Tightens Control in Iraq in Cooperation with the US: We Closed 3,000 Accounts
Qi Card Company Tightens Control in Iraq in Cooperation with the US: We Closed 3,000 Accounts
2025-10-01 04:52
Shafaq News – Translation
Bahaa Abdul Hadi, Chairman and Co-Founder of the International Smart Card Company, owner of the QI electronic card, revealed that the company is implementing a strict policy to monitor and prohibit suspicious activity in cooperation with Iraqi and US authorities, confirming that approximately 3,000 accounts have already been closed.
In an interview with the English-language newspaper The National in Abu Dhabi, translated by Shafaq News Agency, Abdul Hadi said that the transition to a cashless economy in Iraq is gaining momentum, but there is still much to be done.
According to the report, the Iraqi government has introduced financial and economic reforms since early 2023, including the use of electronic payment systems by the government and private sector, and reforms to regulations requiring electronic payment service providers to tighten anti-money laundering and cybersecurity rules.
The report quoted Abdul Hadi as saying that many Iraqis are now using cards and phones instead of withdrawing large amounts of cash from their pockets, indicating a change in payment habits. However, digital awareness remains the biggest challenge, he explained, adding that better incentives are needed to encourage more Iraqis to trust and adopt digital payments and transition away from paper cash.
However, he noted the importance of digital solutions as a turning point in bridging the cash gap in urban areas over the next five years, indicating that it will take 10 years to reach rural areas.
The report also explained that the global smart card company launched the Qi card in 2007, initially as an electronic payment service for public sector salaries and pensions. The company now claims to have more than 11 million users and a network of 23,000 points of sale covering all Iraqi governorates, including remote villages.
He continued: “For the government and the Central Bank, the risks are significant, but the transition of millions of Iraqis from cash to cards and electronic wallets could limit corruption, expand financial inclusion, and enhance the stability of the dinar. However, the abuse of these same systems is also possible.”
The National recalled what the American Wall Street Journal reported last May, stating that QI cards were being exploited in dollar arbitrage schemes for Iranian-backed groups, allowing local salaries to be converted into hard currencies abroad to help Iran circumvent US sanctions. Financial transactions using the cards increased from $50 million to $1.5 billion per month between early 2023 and April 2023, generating profits estimated at $450 million in 2023 alone.
However, the report said that Abdul Hadi strongly denied these allegations, stressing that Qi adheres to a “zero tolerance” policy for any misuse.
He also stated that “when our system detects any warning sign, we immediately close the suspicious account,” adding that more than 3,000 accounts have been banned.
According to Abdul Hadi, in cases where external parties attempted to exploit the broader card system for arbitrage purposes, we actively cooperated with the Central Bank of Iraq and Visa and Mastercard, taking measures such as freezing accounts, limiting the volume of cross-border transactions, and blocking thousands of suspicious cards.
He added that the company uses biometric authentication and real-time monitoring to detect any misuse, noting that in June, the company signed a three-year partnership with the American consulting firm K2 Integrity to enhance oversight.
Abdul Hadi indicated that no US agencies have contacted QI to date regarding these allegations, explaining, “We have not received any warnings… and the company is fully committed to cooperating with both US authorities and Iraqi regulatory bodies should they request information through legal channels.”
Abdul Hadi noted, as quoted in the report, that “the company has suspended the payment of salaries to the Popular Mobilization Forces,” explaining that this decision “was made in consultation with our risk and compliance advisors to ensure full compliance with international regulations and avoid US pressure.”
shafaq.com
