What is preventing Iraq from regaining full sovereignty over its funds?
What is preventing Iraq from regaining full sovereignty over its funds?
1-25-2026
Information/Special…
Financial and banking expert Mustafa Hantoush confirmed that Iraq remains subject to international oversight of its funds due to accumulated problems. He indicated that escaping this oversight is possible but requires serious and practical measures, foremost among them combating corruption and improving financial management.
Hantoush told Al-Maalouma, “After 2003, a decision was issued regarding the Development Fund for Iraq (DFI), which placed Iraqi funds under the direct supervision of the US Federal Reserve in cooperation with the Central Bank of Iraq.”
He added, “Between 2006 and 2008, Iraq signed the Strategic Framework Agreement, under which the DFI was dissolved and the funds transferred to a special account that remains under the supervision of the US Federal Reserve.” He explained that “the reasons for this measure stem from the widespread financial corruption, money laundering, and mismanagement, based on international indicators and reports.”
Hantoush explained that “Iraq continues to register high rates in global corruption indices, which weakens its negotiating position to regain full control over its funds.” He pointed out that “the international community links any easing of restrictions to the existence of strict oversight systems, financial transparency, and banking management that complies with international standards.”
He indicated that “talk of financial sovereignty is not achieved through slogans, but rather through genuine reforms that include activating anti-money laundering laws, strengthening the independence of regulatory institutions, and developing the performance of the public and private banking sectors.”
Hantoush concluded by saying that “regaining full control over Iraq’s accounts is not impossible, but it requires long-term institutional work and genuine political will, because the issue today requires more action and reforms than opinions or media pronouncements.”
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