Iraq agrees with the US to reinstate restricted banks to foreign correspondent banking channels.
Iraq agrees with the US to reinstate restricted banks to foreign correspondent banking channels.
7-19-2026
The Prime Minister’s Media Office announced on Saturday that Iraq and the United States have agreed to reinstate restricted banks to foreign correspondent banking channels.
The office said in a statement that “following the official visit of Prime Minister Ali Faleh al-Zaidi and his meeting with the President of the United States of America, and within the framework of ongoing efforts to strengthen bilateral relations between the two countries, the Governor of the Central Bank of Iraq held a series of high-level meetings with officials at the US Treasury.”
The statement added that “these meetings resulted in reaching a common understanding to reinstate restricted Iraqi banks to foreign correspondent banking channels not linked to the US dollar, after they have met the approved standards and requirements in the areas of compliance and governance, and completed the first phase of the banking sector reform and relicensing program implemented by the Central Bank of Iraq. Banks that are able to complete the reform and relicensing requirements will regain their eligibility to conduct transactions in US dollars, upon completion of all related regulatory procedures and requirements.”
This understanding – according to the statement – comes “within the framework of the comprehensive strategy of the Central Bank of Iraq, which aims to modernize the banking sector, enhance its resilience, and improve its efficiency, ability to withstand challenges and competitiveness, thereby contributing to its full integration into the global financial system, strengthening confidence in the Iraqi banking sector and creating the necessary environment for its openness to international financial institutions.”
He noted that “the Central Bank of Iraq renewed its commitment to continue the comprehensive evaluation of all Iraqi banks, and to strengthen the control and supervision system, to ensure sustainable compliance with international standards and the requirements of governance, risk management, and combating money laundering and terrorist financing.”
He added that “the Central Bank will continue to take appropriate supervisory and regulatory measures against any institution that does not meet these standards, including restricting or suspending its access to international financial channels or revoking its license, whenever necessary, and in accordance with the applicable legal and regulatory frameworks.”
The Governor of the Central Bank of Iraq explained, according to the statement, that “there are (7) banks currently qualified to return and operate within the external banking correspondent channel not linked to the dollar (other currencies), and to have the right later to deal in the US dollar after passing other stages of compliance and governance requirements.”
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