Suspicious deposits and a warning letter: The US Treasury opens an investigation into Baghdad Bank.
Suspicious deposits and a warning letter: The US Treasury opens an investigation into Baghdad Bank.
2026-01-27 | 02:59
Alsumaria News–Baghdad
In a highly dangerous development, the issue of financial and banking compliance is being revisited in Iraq At the forefront of international attention, the Eco Iraq Observatory revealed that the Central Bank had received an official email from Department of the Treasury The American inquiry, specifically from the Office of Foreign Assets Control (OFAC), includes a direct question regarding financial deposits suspected of being linked to oil smuggling operations that were deposited within Bank of Baghdad.
The observatory stated, in a statement received by Alsumaria News The American message indicated that individuals wanted in connection with oil smuggling cases had deposited large sums of money in Bank of Baghdad He pointed out that “the data contained in the OFAC correspondence includes serious indications of the involvement of parties from within the bank in facilitating suspicious deposit operations, amounting to money laundering resulting from illegal activities.”
Summonses and an anticipated international audit are expected.
According to the Eco-Iraq Observatory, “Such cases are considered among the highest levels of financial risk and often necessitate urgent measures, including summoning the authorized manager of the bank in question, in the presence of the American company contracted to audit the financial transfers, in order to trace the flow of funds, verify their sources, and uncover any violations of compliance and anti-money laundering regulations.”
The Observatory noted that “direct indications from Department of the Treasury The American investigation into the involvement of bank employees or departments in facilitating the deposit of funds linked to oil smuggling represents a wake-up call. warning
The report raises serious concerns about weak internal control and compliance systems within some Iraqi banks, particularly those dealing in US dollars. Iraq Under scrutiny,
economic experts confirmed that “this issue is one of the most serious financial compliance files that could put Iraq back under international scrutiny, especially in light of the tightening US Its oversight of dollar movements and cross-border transfers, and its direct link to cases of financing illegal activities and oil smuggling.”
They added that “any leniency or ambiguity in dealing with such matters could negatively impact the reputation of the Iraqi banking sector and revive fears of imposing additional restrictions or procedures on financial transfers, which could directly affect monetary stability and trade.”
Bank statement Baghdad The ambiguity deepens
as Baghdad Bank issued a statement that economic observers considered “neither explicitly denying the existence of the deposits under investigation by the US, nor clarifying the nature of the controversial funds, nor announcing the opening of a transparent internal or official investigation in coordination with the Central Bank and regulatory bodies.”
They added that “the wording of the statement increased the ambiguity and left the public with the impression that the bank is trying to gloss over a widening crisis instead of confronting it with complete transparency, which could exacerbate the repercussions both domestically and internationally.”
The sensitivity of the issue is further underscored by…Washington
The Eco Iraq Observatory concluded its statement by emphasizing that “banking institutions operating in Iraq, particularly those dealing in US dollars, are obligated to strictly adhere to the highest standards of combating money laundering and the financing of illegal activities, including oil smuggling,” warning that “the sensitivity of these issues to the United States makes any failure to comply a direct cause for taking harsh measures.”
alsumaria.tv
