The Central Bank of Iraq regulates the work of consultants and experts, and a source reveals government banking violations.
The Central Bank of Iraq regulates the work of consultants and experts, and a source reveals government banking violations.
2026-09-12
Shafaq News – Baghdad
The Central Bank of Iraq has directed all government banks and licensed non-bank financial institutions to regulate the work of their consultants and experts, ensuring clarity of powers and responsibilities and preventing overlap between advisory tasks and executive roles.
The Central Bank confirmed in a circular that consultants working for financial institutions, whether Iraqi or foreign, are not allowed to be granted any powers to perform executive functions or tasks, stressing the need to separate the advisory role from the executive management of the institution.
The circular also stipulated that the advisor should not assume any position or hold membership on the board of directors of the same bank or any other bank he works for, holding the institution concerned responsible for the legal consequences of violating this.
In this context, an informed source told Shafaq News Agency that there are cases of contracting with a number of experts and consultants in some government banks, which he said were done under conditions that do not conform to the nature of consulting work or the applicable regulations.
The source explained that some consultants occupy or interfere in senior administrative positions and powers within banks, exceeding the advisory role assigned to them, in addition to some of them receiving privileges and large sums of money, while he spoke of allegations regarding bribes being offered to some consultants.
He pointed out that there are cases where it is believed that some consultants are responsible for following up on, promoting, or monitoring transactions within the bank, which may raise questions about conflicts of interest and overlapping jurisdictions.
He added that there are cases of consultants who do not attend or do not perform clear tasks that are appropriate to the nature of their contracts, despite receiving high sums of money, noting that some contracts came about, according to what he stated, as a result of favoritism, nepotism or personal relationships with administrative officials or certain entities, and these are claims that need to be investigated and reviewed by the competent regulatory authorities.
The source called on the relevant authorities, the Ministry of Finance, Parliament and the government to review the contracts of consultants and experts in government banks, and to verify the actual need for their services, and the extent to which their qualifications, tasks and rewards comply with legal controls, calling for the cancellation of contracts that are proven to be unnecessary or to be in violation of applicable instructions.
He pointed out that reviewing this file would reduce unnecessary expenses, prevent overlapping jurisdictions within banking institutions, and promote the principles of governance, transparency, and accountability, stressing that the consultant should play his role in providing opinion and expertise without becoming a party in the executive management or the daily administrative decision-making of the bank.
shafaq.com
