The Kurdistan Region decides to close all electronic currency exchange (forex) and digital trading companies.
, Sunday, the Kurdistan Region decided to close all electronic currency exchange (Forex) and digital trading companies.
The video for this My FX Buddies Blogpost is below here:
A statement issued by the Presidency of the Council of Ministers of the Kurdistan Region stated that "the Ministry of Interior in the regional government has been notified to form a special committee, in cooperation with the relevant authorities, to close all companies operating in the field of electronic currency exchange (Forex) and digital trading."
It added that "this decision comes in light of the instructions issued by the Central Bank of Iraq, which stipulate the prohibition of dealing with electronic and digital transfer companies."
According to the decision, the committee will monitor and close all companies that practice these activities under various names and methods, as part of the Kurdistan Regional Government's efforts to control financial markets and ensure the integrity of economic transactions in the region.
Confirming what Al-Jabal published, the international suspension of Iraqi payment cards comes into effect.
Today, Saturday, May 31, 2025, the information exclusively published by the "Al-Jabal" platform on April 21st regarding the Central Bank of Iraq's intention to suspend the use of electronic payment cards, such as MasterCard and others, in international transactions, starting in June 2025, was confirmed. As the deadline approaches, a series of announcements and statements have emerged, confirming that the decision will go into effect starting tomorrow.
In a significant development today, the First Bank of Iraq (FIB) officially announced to its customers the suspension of the international payment settlement mechanism for its cards. The bank explained in a statement that "this measure will lead to the cessation of the international use of its bank cards, while reassuring its customers that the cards will continue to operate normally within Iraq, and that all other banking services will remain fully operational."
The bank's announcement reinforces what economist Munar Al-Obaidi also stated on Saturday, confirming that a large number of electronic payment cards issued by various Iraqi banks will cease to operate outside the country as of tomorrow, Sunday, June 1, 2025.
Al-Obaidi attributed this anticipated halt to new measures taken by the Central Bank of Iraq regarding the mechanism for increasing the balances of these cards. According to Al-Obaidi, the Central Bank has obligated Iraqi banks to transfer their US dollar-denominated card balances directly to the global companies Visa and MasterCard, exclusively through US correspondent banks. He pointed out that "this requirement related to US correspondent banks is not currently available to the majority of Iraqi banks, which makes the continuation of international payment transactions using their cards impossible."
The economic expert noted that the widespread use of these cards to transfer money abroad at an exchange rate close to the official dollar exchange rate has placed significant pressure on Iraq's foreign currency reserves. He estimated the volume of foreign spending via these cards at between $10 and $12 billion annually.
A banking source revealed to Al-Jebel Platform last April that the Central Bank of Iraq had directed local banks to suspend the use of MasterCard cards in foreign transactions. The source stated that "foreign financial transactions will be exclusively via the Swieg card starting June 1, 2025, as the Central Bank of Iraq directed local banks to suspend the use of MasterCard cards in foreign financial transactions."
According to the source, "Using the American Swieg card will give the Central Bank the ability to monitor its operations and financial movements."
Commenting on the issue at the time, banking expert Mustafa Akram Hantoush told Al-Jabal, "MasterCard will be restricted to foreign banks operating in Iraq, as well as K-Card. Local banks with electronic payment cards must reach an agreement with foreign banks operating in Iraq to continue using MasterCard cards abroad, or they must reach an agreement with international foreign banks."
Al-Sudani to a member of Congress: It is necessary to build a comprehensive vision for Iraq that keeps pace with economic transformation and development.
A statement from his office, a copy of which was received by {Euphrates News}, stated that: “The meeting discussed the overall Iraqi-American relations and ways to strengthen them in a way that serves common interests, Iraq’s progress in economic recovery, and confirms regional stability.”
Al-Sudani pointed to "the importance of deepening relations with the United States in various fields, continuing bilateral dialogue based on mutual respect, and affirming Iraq's sovereignty and shared values, within the framework of the agreements and strategic partnership between the two friendly countries."
He also highlighted the "need to build a comprehensive vision for Iraq in light of the scale of the economic and developmental transformation taking place in Iraq."
For her part, Senator Rosen affirmed her country's "commitment to building sustainable relations with Iraq," praising "the progress being witnessed in Baghdad and other Iraqi cities, and the Iraqi government's ability to avoid regional conflicts, which underscores Iraq's pivotal role and its growing importance in the region."
Iraq ranks third in the Arab world in the number of bank cards issued.
The Prime Minister's financial advisor, Mazhar Mohammed Salih, confirmed on Saturday that Iraq's ranking as third in the Arab world in the number of bank cards issued is an important indicator of the development of the financial sector and the growing community and international confidence in government measures.
Tehran announces some progress in nuclear negotiations with Washington.
link this is from today out of Iran's news
The head of Iran's Atomic Energy Organization said there was "some progress" in indirect negotiations with the United States.
Head of the Atomic Energy Organization of Iran, Mohammad Salami, pointed out that talk of "zeroing enrichment" is a statement that mostly applies to the Zionist community.
He explained that his country has a 1,000-megawatt nuclear power plant in Bushehr, which produced 7.3 billion kilowatt-hours of electricity last year alone.
He added that by the end of the Seventh Development Plan, the country's nuclear power plant capacity will reach 3,000 megawatts, and that land has been prepared for the construction of two nuclear power plants in the south and north of the country.
Salami pointed out that the organization's plans are topped by a "20-year strategic document, which aims to produce 20,000 megawatts of electricity."
He said the organization has "made significant strides in developing plasma, laser, and quantum therapy," noting that locally produced radiopharmaceuticals "are comparable to those available in various countries around the world and are used to treat and diagnose most diseases."
This morning, Iranian Foreign Minister Abbas Araqchi, during his participation in a ceremony to renew the Ministry of Foreign Affairs' charter to the principles of Imam Khomeini at the Imam's shrine, stated that Tehran's approach to uranium enrichment has "one axis," which is its rejection of foreign hegemony, in line with the principles and foundations of the Islamic Revolution.
The minister emphasized that the United States "cannot deprive the Iranian people and future generations of their rights simply because of its own fears," and that possessing peaceful nuclear energy is Iran's natural right
The "smiling" Sudanese man spreads in Baghdad (photos)
Over the past two days, the capital, Baghdad, has witnessed the spread of pictures of Iraqi Prime Minister Mohammed Shia al-Sudani in most of the main streets and even side streets.
This advertising space on the streets, which was dedicated about two weeks ago to welcoming the 34th Arab Summit in Baghdad and its Arab guests, has now been transformed into a space dedicated to the Iraqi Prime Minister.
Shafaq News Agency's lens captured scenes of the advertising space placed before the Arab Summit remaining intact, but replaced with billboards by Al-Sudani, reading, "Continuing the development process based on Iraq's supreme interests."
Parliamentarian: Extraordinary sessions will be held after Eid to approve important service laws
MP Hussein Al-Saabari revealed, on Saturday, that the House of Representatives intends to hold extraordinary sessions after the Eid Al-Adha holiday, to compensate for previous sessions that were not held due to the lack of quorum.
Al-Saabari said in a statement to the Al-Maalouma Agency, that “the House intends to discuss a number of important laws during these sessions, most notably the Popular Mobilization Law, the budget schedules, and the Ministry of Education Law.”
He called on members of the House of Representatives to "commit to attendance and not be absent from upcoming sessions," calling on "political blocs to urge their representatives to perform their legislative role in a way that serves the public interest."
Al-Saabari pointed out that “the holding of extraordinary sessions represents an important opportunity to correct the course of legislative performance and compensate for the delay in passing laws that directly affect the lives of citizens,” noting that “serious political will and cooperation between blocs will be the decisive factor in the success of these sessions and achieving tangible results.”
It is noteworthy that the House of Representatives had previously called for holding emergency sessions during the legislative recess in order to vote on important laws
An economist talks about the Central Bank's foreign currency sales in numbers.
An economic expert revealed a significant increase in the Central Bank of Iraq's foreign currency sales during the first quarter of 2025.
Economic expert Manar Al-Obaidi stated in a post on his social media account on Sunday, June 1, 2025, that "the Central Bank's sales from the foreign currency window amounted to $20.8 billion for the first quarter of 2025, a 5.2% increase compared to the same period in 2024, when they amounted to $19.76 billion."
Al-Obaidi explained that the breakdown of foreign exchange window sales for the first quarter of 2025 included cash sales of $814 million, international settlements (electronic cards) of $2.934 billion, bank balance enhancements of $17.05 billion, and direct transfers of $0.
According to Al-Obaidi, "The Central Bank's foreign currency sales decreased in March, reaching only $5.796 billion, distributed among: cash sales of $184 million, international settlements of $777 million, and bank balance reinforcements of $4.835 billion."
He noted that "the Central Bank sold $77.65 billion in 2024, and that Central Bank sales are expected to reach the same levels this year, according to data from the first quarter of 2025, with a slight increase in sales volume."
Including the Popular Mobilization Law... 140 draft laws await parliament's vote
The Parliamentary Investment and Development Committee revealed that there are more than (140) draft laws, including new legislation and amendments to existing laws, that are still awaiting a vote in the House of Representatives.
The committee's vice-chair, Hussein Al-Sa'bari, said, "A large number of these projects have completed their discussions within the relevant committees and are ready for inclusion on the agenda of the general sessions."
He pointed out that "many of them concern vital sectors that affect citizens' lives."
He explained that "among the most prominent laws proposed are the Popular Mobilization Forces Law, legislation related to higher education, particularly the "Basis for Granting Certificates," in addition to service and administrative laws."
For his part, member of the Parliamentary Legal Committee, Muhammad Anouz, added that the legislative priorities also include the Anti-Narcotics Law and the Retirement Law, which needs to be amended to ensure..
EY tells Iraq to change public bank management teams
- Restructuring plan follows losses
- Mergers possible
- New larger bank an option
Iraq is planning to change the management teams at its public banks in an attempt to improve their governance and reduce losses.
The move is part of a comprehensive restructuring plan devised by the London-based consultancy firm EY which may involve mergers and the creation of a new larger state-owned bank.
Iraqi prime minister Mohammed Al Sudani has ordered the reorganisation of the boards of government-owned banks, which control over 80 percent of such services in the country.
Iraq has seven major government banks and more than 50 national and foreign units, including 27 Islamic banks, according to its central bank.
Al Sudani’s decision was in line with a proposal by EY, which was asked by Baghdad last year to prepare a study on the restructuring of the country’s banking sector following heavy losses by key government lenders.
“This step comes within the framework of a comprehensive study conducted by EY, which focuses on improving banking governance in the government sector,” Al Sudani’s financial adviser Mudhar Saleh was quoted as saying in a statement by Al-Forat news agency.
He said it will contribute to the restructuring of government banking entities “to become more effective in supporting development, investment and revitalising the financial market”.
“These reforms will also contribute to improving the speed and quality of financial decisions and enhancing risk management, which supports the stability of the financial system and improves transparency and accountability,” Saleh said.
- Iraq finalises nuclear cooperation deal with Russia
- Abu Dhabi VC EQIQ to increase Iraq tech investments
- Iraq to launch Baghdad metro project later this year
In mid January the Iraqi cabinet announced plans to restructure public banks, including the creation of a new giant bank.
The bank, to be called First Rafidain Bank, will have a paid-up capital of 500 billion Iraqi dinars ($382 million), to be raised later to one trillion dinars ($764 million), of which the government will control 24 percent.
Salah Nouri, an analyst at the Baghdad-based Iraqi Institute for Economic Reforms, said the restructuring plan could include the merger of the government-owned Rafidain and Rasheed banks.
Al-Zubaidi: The American New Middle East Project is an important opportunity for Iraq, and we must join it.
The best path for the future of Iraqis
Iraqi politician Baqir Jabr al-Zubaidi called on Sunday for Iraq to be included in the American New Middle East Project. He said it represents a significant opportunity for a better future for Iraqis based on an economic foundation free from wars and conflicts.
As US-Iranian negotiations enter a serious and important phase, the new Middle East is taking shape in a way that will have significant repercussions for Iraq.
The US administration has openly declared its desire to forge a new Middle East based on an economic foundation, free from wars and conflicts. This represents a significant opportunity for Iraq, which possesses tremendous economic potential.
Trump's visit focused on Saudi Arabia and Qatar for purely economic reasons, and the contracts signed are clear evidence of the economic agenda.
The Iranian-Saudi rapprochement has contributed and will contribute to greater stability, while the UAE, on the other hand, appears more preoccupied with conflict zones in Sudan and Libya.
Saudi Arabia has successfully struck a blow to the Qatari-Turkish project in Syria by spearheading the lifting of US sanctions on Damascus. In doing so, it sends a clear message that it will not stand idly by, especially given that the US side desires a Saudi role there.
Oman continues to play its historic role in the region and the world to the fullest, in line with Sultan Qaboos' policy of "extending a hand to all."
Jordan continues to lose its role as a mediator with Israel in the region amidst the changes taking place, and will attempt to find a new role to help it emerge from its internal crises.
The new Middle East will depend on oil markets, financial markets, and the flow of investment. It is up to decision-makers in Iraq to take the right path and set the country on this path for a better future for Iraqis.
Fagin confirms to Al-Sudani that Washington is seeking to bring its companies into Iraq.
Prime Minister Mohammed Shia al-Sudani discussed with the newly appointed US Chargé d'Affaires in Iraq, Steven Fagin, on Sunday, the prospects for enhancing bilateral cooperation between the two countries, particularly in the areas of investment, energy, education, and expanding private sector activities.
Prime Minister Mohammed Shia al-Sudani received the Chargé d'Affaires of the US Embassy, Mr. Stephen Fagin, on Sunday, on the occasion of his assumption of his duties.
His Excellency congratulated Mr. Fagin, wishing him success in his mission and working to develop relations to achieve mutual benefit and interests for both countries.
Mr. Al-Sudani emphasized the necessity of cooperation between Iraq and the United States based on the Strategic Framework Agreement and the memoranda of understanding, coordination, and consultation between the two sides, particularly in the areas of economy, investment, security, energy, education, investment, and private sector activities.
For his part, Mr. Fagin highlighted the importance of bilateral relations between the two countries and the US government's support for partnerships with Iraq at various levels and in various fields. He praised the government's efforts to accelerate development and urban renaissance, and emphasized the need to encourage American companies to invest and partner in Iraq.
Iraq: Al-Sudani calls for expanded cooperation with Washington
Iraqi Prime Minister Mohammed Shia al-Sudani stressed on Sunday the necessity of cooperation between Iraq and the United States based on the Strategic Framework Agreement and memoranda of understanding, coordination, and consultation between the two sides.
During his reception of the US Chargé d'Affaires, Stephen Fagin, on the occasion of his assumption of his duties, Al-Sudani stressed the need to expand cooperation in the fields of economy, investment, security, energy, education, and investment in private sector activities, according to an Iraqi government statement.
For his part, Fagin emphasized the importance of bilateral relations between the United States and Iraq and the US government's support for partnerships with Iraq at various levels and in various fields.
He also praised the Iraqi government's efforts to accelerate development and urban renaissance, and to encourage American companies to invest and partner in Iraq, according to the statement.
Minister of Finance Discusses Support for Development Projects in Iraq with World Bank
Minister of Finance Taif Sami discussed with the World Bank Representative to Iraq on Sunday enhancing cooperation to support development projects.
The ministry said in a statement received by the Iraqi News Agency (INA): "Minister of Finance Taif Sami Mohammed received the World Bank Representative to Iraq and his accompanying delegation to discuss plans to enhance cooperation to support development projects by leveraging the technical and financial support provided by the Bank in implementing strategic projects to stimulate economic growth, especially in the areas of infrastructure and human development."
The statement added, "The two parties discussed developing the private sector and encouraging investment as the primary driver of sustainable economic growth, in addition to the need to support financial reforms to achieve stability and growth."
The statement explained that "the Bank Representative expressed his commitment to continuing to support Iraq in achieving its development goals and enhancing its ability to confront economic and development challenges."
Iraqi Dollars and Iranian Factions: The Largest US Investigation Reveals Mysteries and Names!
The conversion started with millions and ended with trillions.
In a lengthy investigation by the Wall Street Journal, it was reported that factions linked to Iran in Iraq discovered a profitable way to smuggle dollars, using Visa and MasterCard cards, especially after the US Treasury Department turned off the “tap” in late 2022 and banned international transfer transactions from Iraqi banks that lacked anti-money laundering guarantees. Although the method has been known for years, the investigation speaks of unprecedented amounts that jumped in Iraqi transfers abroad via “MasterCard” and “Visa” from 50 million dinars per month in early 2023 to one and a half billion dollars in April of the same year (more than 2 trillion dinars). According to the report, fraudsters began filling large numbers of credit cards with Iraqi dinars inside the country, then transferring them to neighboring countries such as the UAE, Turkey, Jordan, and even Indonesia, to withdraw dollars from there at the official exchange rate from ATMs, then return the dollars to Iraq and sell them on the market at the black market price, and so on. The report accuses several banks and entities such as “First Bank of Iraq FIB” and “K Card and other entities are all contracted with MasterCard and Visa Card. There are other methods of fraud and getting dollars out of Iraq, including pretending to buy products and antiques at exorbitant prices from the UAE, for example, while nothing is actually being bought and sold. Rather, the transaction is merely a way to transfer and convert “dinars inside Iraq” into “dollars outside Iraq,” and it is carried out with the collusion of the “seller and buyer,” both of whom are fictitious. The report states that the US Treasury expressed its concern about “Qi Card” cards, especially since they were used under a contract with an Iraqi government bank to distribute salaries to millions of retirees and government employees, including the Popular Mobilization Forces and members of the factions. MasterCard and Visa removed thousands of “merchants” in the UAE and blocked their service, and the number of Iraqi cards that were disabled reached more than 100,000.
The investigation concluded that the Treasury Department also blacklisted three Iraqi card-issuing companies suspected of having links to militias. All of these companies were partners of Visa or Mastercard. One of these companies, Al-Saqi Electronic Payment Company, affiliated with the Al-Abbas Holy Shrine, was also blacklisted, along with Yana, a company in Erbil that had been under suspicion but had managed to rectify its situation.
Wall Street investigation
raq was a small market for Visa and Mastercard two years ago, generating only $50 million or less in cross-border transactions per month at the start of 2023. It then jumped to nearly $1.5 billion in April of that year, a 2,900% increase overnight.
What has changed?
Iraqi militias have discovered how to exploit dollars on a large scale from Visa and Mastercard payment networks for their own benefit and that of their allies in Iran, according to US and Iraqi officials and documents reviewed by The Wall Street Journal.
The shift to cards came after the US Treasury and the Federal Reserve Bank of New York closed a major legal loophole used for fraud in late 2022 – international transfer transactions by Iraqi banks that lacked anti-money laundering safeguards.
Flaws in this system, established by the United States during the occupation of Iraq, allowed Iran and the militias it supports to access billions of dollars over more than a decade.
After the US finally turned off this tap, militias quickly found ways to take advantage of the card scheme.
American payment giants have helped fuel this boom by contracting with Iraqi partners to issue Mastercard and Visa-branded cash and debit cards, offering them financial incentives to boost transaction volumes.
After the US Treasury Department was notified of the involvement of armed groups, it took months for card companies to significantly curb transactions—which had declined from their peak but remained between about $400 million and $1.1 billion per month until earlier this year.
In an attempt to control card payments, the Central Bank of Iraq recently set a maximum of $300 million per month.
Iraq uses an official exchange rate for the dollar and a higher unofficial exchange rate. This means anyone can purchase prepaid cards in Iraq, withdraw the funds as dollars in other Middle Eastern countries at Iraq's official exchange rate, and then return them to Iraq to be converted into dinars at the unofficial exchange rate. This generates gains of up to 21%. Mastercard and Visa have also benefited by charging fees of 1% to 1.4% on cross-border transactions, or even higher in some high-risk markets.
A person familiar with the matter said that Iraqi cardholders participating in the scheme generated an estimated $450 million in profits in 2023 alone, with foreign card networks estimated to have generated nearly $120 million between them. Revenue is expected to grow in 2024, with total transactions increasing by about 60%.
Treasury Department officials informed card companies last fall that Iraqi militias had seized large quantities of Mastercard and Visa cards loaded with cash, transferred them to the United Arab Emirates and other neighboring countries, and then withdrawn the funds. The Treasury Department said the armed groups then transferred the funds to Iraq, exchanged them for dinars, and profited from the currency spread.
In recent days, the Treasury Department formally requested that the Central Bank of Iraq block more than 200,000 cards used by militia members due to fraud concerns.
US and Iraqi officials said that warnings to Visa and Mastercard about the militias' role in the surge in cash and debit card payments were largely ignored for months.
US and Iraqi officials said the Federal Reserve Bank of New York and Treasury Department officials began asking Visa and Mastercard to explain the increased transactions in May 2023.
The Iraqi card issuers that partnered with Visa and Mastercard were not subject to sanctions, and there is no public allegation that Visa or Mastercard violated any sanctions.
Line up at the ATM
The militias smuggled the cards to the United Arab Emirates, Turkey, and Jordan. There, they withdrew the cash from ATMs—Iraqi eyewitnesses described Iraqis queuing day and night at ATMs in Dubai, carrying stacks of prepaid cards, inserting them one by one. They brought the money back to Iraq, either via hawala or electronic transfer between bank accounts.
Regulators in Iraq and the UAE limited daily withdrawals and cracked down on card smuggling. But the militias adapted, convincing merchants in other countries with access to the Visa and Mastercard networks to conduct fake purchases in exchange for a commission.
In an example described by bankers familiar with the scheme, a luxury goods store in the United Arab Emirates charges $5,000 in cash, even though no merchandise is traded.
For a 5% down payment, the store gives the cardholder $5,000 in cash or its equivalent in the UAE currency, the dirham, which is pegged to the dollar.
The card company debits the card at the official exchange rate for the Iraqi dollar. The funds are then returned to Iraq for circulation in the market.
Eventually, the fraudsters seized the handheld point-of-sale (POS) devices, typically used by restaurants and retailers, for themselves, according to Iraqi and US officials. In so-called "POS farms," they processed fake transactions on dozens of devices, using virtual private networks to hide their locations, the officials said.
Officials have witnessed a similar increase in funds leaving Iraq via money transfer companies Western Union and MoneyGram. Remittances via these two companies surpassed $1 billion in March 2023, shortly after restrictions on interbank transfers were tightened, and rose to $1.7 billion in June. When Western Union announced its second-quarter financial results in July 2023, it raised its full-year revenue forecast “primarily due to business performance in Iraq.”
The company also revealed that it is holding "regular discussions with policymakers in both the United States and Iraq regarding the increased volume of remittances flowing through its network in Iraq."
As a result of the concerns, US and Iraqi regulators imposed new restrictions on monthly transfers by two American money transfer companies. At the authorities' urging, Western Union and MoneyGram closed accounts in several Iraqi banks. These steps reduced monthly outflows from Iraq to $110 million by October 2024.
After the First Iraqi Bank in Baghdad began offering the instant money transfer service known as Visa Direct in early 2024, this led to a massive influx of cash transactions to accounts linked to other Visa cards.
Over a two-month period, the bank's Visa cardholders sent $1.2 billion to Dubai, Turkey, and other locations, according to a person familiar with the matter. The source added that one cardholder repeatedly transferred more than $5 million a day to 11 accounts in Indonesia. The Treasury Department and the Federal Reserve expressed concerns about these massive transfers, and Visa discontinued the bank's use of the service 10 weeks later.
A clear picture of fraud
A person familiar with the matter said that the number of Iraqi entities licensed to issue prepaid or debit cards increased from five to 17 between 2017 and 2024.
US officials were particularly concerned about one of the most popular cards in Iraq, known as the Qi Card, which is a partner of both Mastercard and Visa and covers about half the market.
Card transactions increased from about $10 million per month in early 2023 to more than $500 million per month by the beginning of this year.
Under a contract with a state-owned Iraqi bank, the card was used to distribute salaries to millions of retirees and government employees, including militias and the Popular Mobilization Forces that fought ISIS and became part of the government.
Militia leaders then seized a number of bank cards and stuffed records with the names of nonexistent or non-existent forces to obtain more cards, according to an Iraqi banker. More than 200,000 militia members were receiving their salaries on Qi cards.
This prompted the US Treasury Department to request the Central Bank of Iraq in recent days to ban Qi cards issued to the militias. The Iraqi parent company of Qi cards stated that it "no longer provides any services to the Popular Mobilization Forces."
The company stated, "The only service provided to Popular Mobilization Forces cardholders is the transfer of salaries issued by their employers." US and Iraqi officials said that funds paid to the militias can easily be transferred to other cards operating outside Iraq. Data tracking card usage across the Iraqi border painted a clear picture of fraud.
Visa and Mastercard Procedures
When Mastercard's global compliance team conducted a virtual audit in August 2023 of Yana Banking Services, an Erbil-based credit card provider, it found no evidence that customers had been screened for US sanctions, a requirement under its licensing agreement with Mastercard.
The review also found “ineffective monitoring and reporting of suspicious activities” to prevent fraud, as well as ineffective anti-money laundering safeguards.
According to Mastercard's findings, reviewed by the newspaper, "no customer risk assessment was conducted, and no risk assessments were reflected in the eight cardholder profiles and three merchant profiles tested during the review process."
Yana was barred from issuing new Mastercard-branded cards until it corrected what the review described as "high-priority" violations. The suspension was later lifted after the issues were addressed, according to a person familiar with the matter.
Enforcement accelerated this spring. In March, Mastercard blocked more than 100,000 cards issued in Iraq and removed 4,000 merchants in the United Arab Emirates from its payment network for suspected involvement in fraudulent Iraqi transactions.
In April, Visa sent alerts about potential fraud to 70,000 Iraqi cards and blocked approximately 5,000 merchants in the UAE, temporarily blocking their use.
Companies and authorities began blocking some of the 17 Iraqi card issuers, cutting total transactions by nearly half.
In addition to the $300 million monthly cap on total cross-border transactions in the country, the Central Bank of Iraq imposed a monthly cap of $5,000 per cardholder. It also hired K2 to monitor card transactions and required each card issuer to transfer funds to an Iraqi bank with a U.S. correspondent bank, according to officials.
The Treasury Department took sweeping action, blacklisting three Iraqi card issuers with suspected links to militias. All three companies were Visa or Mastercard partners.
One of these companies, Al-Saqi Electronic Payment Company, is affiliated with the Al-Abbas's (p) Holy Shrine.
Visa has stopped processing Saqi cards on its payment network. However, the Iraqi company's website still displays images of Visa cards, promising customers "all the benefits Visa offers, including ease of use, global acceptance, and high security standards."
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Maliki's "Money" in the Trump Era: An Iraqi Economist Compares and Fears for Al-Sudani
Comment by Imad Abdul Latif Al-Salem
As disagreements escalate between the Iraqi Ministry of Finance and the Central Bank over the possibility of borrowing to cover the budget deficit and payroll, Iraqi economist Imad Abdul Latif issued a stern warning to Prime Minister Mohammed Shia al-Sudani against forcing the Central Bank to borrow indirectly, or what economists call “discounted transfers,” which are loans guaranteed by a government bank and repaid within six months. Most governments around the world resort to this method to cover temporary deficits, not the chronic structural deficit facing the Iraqi economy.
In a comparative article, Abdul Latif draws Al-Sudani's attention to a similar conflict currently taking place between Trump and the US Federal Reserve Chairman over interest rate cuts, and the possibility of learning from what is happening there between two parties who are fiercely fighting without violating the traditions of state institutions and without resorting to the option of dismissal, despite Trump's authority to do so. He warns the Prime Minister against repeating the actions of Nouri al-Maliki's government when he dismissed the Central Bank Governor, Sinan al-Shabibi, in 2012 after the latter refused to lend to the government. He concludes the article with another warning about the inflation of public spending and its transformation into a "stake" that will strike the next government.
Dr. Imad Abdel Latif Al-Salem's article, on the Al-Hewar Al-Mutamadin website
he dispute between US President Donald Trump and Federal Reserve Chairman Jerome Powell reminds me of the dispute between the former Iraqi Prime Minister and the former governor of the Central Bank of Iraq.
It was supposed to be a mere disagreement over "fiscal management and monetary policy," a "general case" of a "traditional" disagreement that could occur between any central bank governor and any head of the executive branch.
The difference and the lesson between us and a country with established institutions like the United States of America (and many other countries) is that the “president,” no matter how reckless he may be, or how deeply he believes in the “economic follies” he commits, or whatever the sources of his political power (he is the leader of the world’s largest economic and military power), will not dare to “fire” the governor except after lengthy and complex procedures that could cause massive losses to the markets and severe damage to the economy, and could also entail dire “political and social” consequences (for both the country and its “president”).
Donald Trump has repeatedly demanded that the Chairman of the Federal Reserve cut interest rates, and because he has failed to do so, Trump has described him as an “idiot” who “has no idea about the economy.”
However, Donald Trump does not dare to fire Jerome Powell, nor appoint a replacement, before Powell's term as Chairman of the Federal Reserve ends. In this regard, US Treasury Secretary Scott Bessent said that the White House expects to begin interviewing candidates to succeed the Chairman of the Federal Reserve (the US central bank), whose term ends in May 2026.
Here, the president doesn't "get angry" with the "governor" if the latter doesn't comply with his wishes (as is currently the case between Trump and Powell). Rather, the president "uproots" the governor (because he is the one who originally appointed him, and in an "acting" capacity), or refers him to court because he refuses to comply with executive orders that the governor believes constitute a clear violation of the applicable law regulating the bank's work and the exercise of the governor's powers. Meanwhile, "over there," in "savage" America, the "governor" refuses even to meet with the president, declaring that he "has not and will not request a meeting with the president... because this is unprecedented and I cannot imagine myself doing it."
Why, Jerome Powell, do you refuse to meet with the president? Isn't your categorical refusal to accept the president's orders to cut interest rates enough?
Powell responds, "There's no reason for me to ask for a meeting with the president. It's always been the other way around," as the president often requests a meeting with the Fed chairman. "The initiative doesn't come from the Fed, it comes from the president."
Trump did just that, and the meeting took place at the White House (May 30, 2025). The White House and the Fed confirmed that they met at Trump's invitation, renewing a strained relationship that had seen Trump repeatedly rebuke Powell for not lowering borrowing costs (by lowering interest rates), a move President Trump favors. Meanwhile, the Fed chairman believes that "he and his colleagues on the Federal Open Market Committee will set monetary policy, as required by law, to support maximum employment and price stability, and will make those decisions based solely on careful, objective, and nonpolitical analysis."
Imagine what would have happened to our "governor" if he had refused to meet with the "president" without his invitation, and what would have happened to him after the first serious disagreement with "Mr. President" over monetary policy priorities.
In our country (and in many countries like ours), the "matter" is very simple, and the "resolution" to the disagreement is also very "naive."
In our country, "Mr. President" "dismisses" the governor while he's outside Iraq (participating, for example, in a meeting of central bank governors in a certain country under the auspices of the International Monetary Fund). Not content with that, "Mr. President" issues an arrest warrant for him (while he's outside Iraq), forcing him (automatically) not to return, forcibly "exiling" him, and subsequently sentencing him to prison on numerous corruption charges. He later dies in exile, after years of tireless efforts to defend himself, his family's reputation, and his academic and professional career.
Therefore, we have no "independent" central bank, no governor with immunity, and no effective and efficient monetary policy.
We only have "Mr. President."
I fear that “Mr. President” will intervene (in a difficult fiscal year) to force the Central Bank to acquiesce to the Ministry of Finance’s request to borrow from the Central Bank in the form of “discounted transfers,” and to restrict it to a “debt” on the “current” government, and turn it into a “stake” for the next government, with the aim of covering salaries and wages and the unbridled inflation of current spending.
The parliamentary investment committee calls for breaking the legislative "stalemate" and passing important "accumulating" laws.
The Parliamentary Development and Investment Committee called for breaking the legislative deadlock to pass and address dozens of important laws that have accumulated and directly impact citizens' lives. The committee emphasized the importance of fulfilling the government's commitments under the ministerial program and budget-related spending plans.
Hussein Al-Sa'bari, deputy chairman of the parliamentary Development and Investment Committee, said, "More than 140 draft laws, including new ones and amendments to existing laws, are still pending in parliamentary committees and require a vote by parliament."
He added, "Many of these laws have been discussed by the relevant committees and are ready to be included on the agendas of the plenary sessions," noting that "these projects relate to vital aspects that impact the lives of citizens and various state sectors."
He explained that "the most prominent of these laws is the Popular Mobilization Law, in addition to projects related to higher education, the basis for granting certificates, and other legislation of a service and administrative nature ."
He pointed out that "the upcoming parliamentary sessions are of particular importance as they will determine the fate of a large number of pieces of legislation, eagerly awaited by citizens and state institutions alike." He explained that "delaying the passage of these laws could negatively impact the work of ministries and disrupt the provision of services."
Al-Sa'bari noted that "there is an increasing number of calls for regular and intensive parliamentary sessions to ensure that the legislative deadlock that accompanied previous periods is overcome and to fulfill the government's commitments under the ministerial program and spending plans linked to the general budget."
He explained that "Parliament's legislative agenda also includes strategic laws such as the Oil and Gas Law, the Civil Service Law, and the Social Security Law, as well as laws related to administrative reform and oversight of government performance."
MP Al-Maliki warns against the state slipping into a financial burden at the expense of citizens.
MP Raed Al-Maliki, on Saturday (May 31, 2025), sharply criticized the government for imposing new fees on some basic services, considering that these fees represent an additional burden on citizens and affect their basic needs.
In a statement received by Baghdad Today and issued by his office, Maliki expressed his surprise at "the government's insistence on maximizing revenues from people's pockets, without providing clear justifications," considering that "this approach reflects financial chaos and a deficit in resource management that the government refuses to publicly acknowledge."
Al-Maliki asked, "Where does a citizen go when he has a criminal complaint, if the state imposes fees for filing it?" He noted that "some citizens are also forced to pay sums to sheikhs or mediators under various names, which increases the cost of accessing justice."
The MP stressed that "there are real possibilities for financing the state without resorting to burdening citizens, by controlling current revenues and reducing unnecessary expenditures."
In this context, he pointed to the recent Cabinet decision allocating 160 billion dinars for the "Beautiful Baghdad" project, saying, "This project could become a means of distributing funds to candidates, each in his own district or street, instead of directing spending toward matters that affect citizens' daily lives."
Al-Maliki concluded his warning by saying, "We fear that such fees will discourage people from resorting to the law and instead turn to individual and tribal solutions, which is dangerous to the security and stability of society."
Recent weeks in Iraq have witnessed a wave of popular and official criticism after the government announced new fees for a number of services, including those for filing criminal cases. This has sparked widespread controversy in legal and social circles.
This measure comes amid a worsening economic crisis and a marked decline in citizens' purchasing power, heightening fears of the disintegration of the justice system and a shift toward tribal alternatives or individual violence to resolve disputes.
MP Raed Al-Maliki's remarks in this context highlight the growing gap between government policies and citizens' daily needs, and sound the alarm about the impact of these fees on citizens' confidence in the state and its judicial institutions.
Al-Maliki: Iraq will not be an arena for settling scores.
The head of the State of Law Coalition, Nouri al-Maliki, affirmed today, Sunday (June 1, 2025), that Iraq will not be an arena for settling scores, during his meeting with the Russian Federation's ambassador to Iraq.
Al-Maliki's media office said in a statement received by Baghdad Today that "the head of the State of Law Coalition received the Russian Federation's ambassador to Iraq, Elbrus Kutrashev, in his office today. The two sides exchanged views and opinions on Russia's relations with Iraq and the mutual visits between officials from the two friendly countries."
He added, "Regional and international developments, particularly in Syria, Palestine, and Lebanon, and the repercussions of the Russian-Ukrainian war, were reviewed, in addition to the ongoing negotiations between the Islamic Republic of Iran and the United States of America."
According to the statement, Al-Maliki pointed to "the importance of expanding the horizons of joint cooperation between Iraq and the Russian Federation to serve the interests of the two friendly peoples," explaining that "the Middle East is facing serious challenges that require action and cooperation to preserve security and stability and protect it from dangers," stressing that "Iraq will not be an arena for settling scores."
For his part, the Russian ambassador commended Iraq's efforts to consolidate peace in the region, stressing Moscow's commitment to maintaining bilateral cooperation to serve the security, stability, and prosperity of both countries.
Iraq Investment Forum
The Iraq Investment Forum is a major event being hosted by Baghdad in mid-June under the patronage of the Prime Minister. This important event joins a series of other activities that have gained similar importance, such as the Arab Summit and the Arab Media Conference, which have restored Iraq's leading role in hosting important economic and regional events that establish stability, prosperity and development in Iraq and the region.
The Iraq Investment Forum, organized by the Iraqi Economic Council in cooperation with the National Investment Commission and with the support and supervision of the Office of the Prime Minister, reflects the great opportunities provided by Iraq (the land of opportunities) to transform those opportunities into achievements on the ground.
It is worth noting that there are 140 investment opportunities offered by this forum, in which major international investment companies with unique experiences around the world will participate.
It is hoped that this forum will be a historic opportunity and occasion for investment companies to regain their activity and confidence in a new investment environment guaranteed by the state, which will ensure the success of the projects that will be implemented.
It is true that the facilities and great preparations offered to make this forum a success, but what is more important than all of that are the results that will be achieved on the ground so that we can say that opportunities have truly been transformed into achievements.
A sound investment decision must be based on a study of the reality of global events and changes and the major challenges facing the world at various levels. This is because being aware of what is happening according to accurate predictions and expectations allows us to gain success in all investments that will be implemented.
It is important to note that investment opportunities must include important infrastructure projects in the structure of planned new projects, so that the focus is not solely on entertainment investments, despite their importance.
Iraq needs investments with quick returns that contribute to diversifying the economy and sources of income in order to enable our country to move away from a single-source, rentier economy.
The principles of transparency also require announcing projects, their type, and their importance to the Iraqi economy. Rather than simply announcing a number of opportunities, the need also requires announcing the nature of these projects, their importance, and their economic feasibility.
This vision is based on close monitoring of all projects being completed.
We must think, as do our neighboring countries, about modern investments that keep pace with tangible global development and strengthen their economies.
Our observation comes in support of and reinforcement of the government's sound direction in this regard, and as a reminder of the importance of benefiting from the experiences of others rather than copying them.
We are hopeful that this forum will be a success, so that Iraq can once again become a destination for investors and a home for development and harmony. It will be an important economic event, adding to the series of other important events that have crowded Baghdad, the capital of peace, such as the Arab League and Arab Media Summits. At the same time, we look forward to reading the potential for success in attracting investments, thanks to the government's bold decision to guarantee projects, which gives momentum to encouraging investment in a promising and stable business climate.
Modernising Iraq's Financial Infrastructure: The Rise of Digital Payments
By Samer Khraishi, Regional Director for Account Management and Business Development, GCC, Iraq and Jordan at BPC. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.
Modernising Iraq's Financial Infrastructure: The Rise of Digital Payments
Iraq's financial infrastructure has long been in need of significant transformation. With less than 20% of the population owning a bank account, Iraq has one of the lowest financial inclusion rates in the Middle East, paling in comparison to 54% in Saudi Arabia and 69% in the UAE.
In an effort to close this gap, the Iraqi government and financial sector have focused on the adoption of digital payments, with over two trillion Iraqi dinars worth of e-payment transactions recorded in August 2024 alone. The growing shift towards digital-first payment solutions, enabled by partnerships with global fintech partners, is beginning to bridge the shortfall in financial inclusion and power economic growth across Iraq.
Retiring Iraq's Legacy Infrastructure
Iraq's financial sector has faced challenges in expanding its customer base and has experienced limited banking penetration, leaving a large portion of the population unbanked and dependent on informal financial systems. This low access to formal banking services has left many Iraqis unable to take advantage of modern financial products and services, reducing savings rates and fostering financial instability among individuals and businesses.
Further compounding this issue is widespread reliance on outdated regulatory frameworks, disincentivising the adoption of modern financial technology including cloud-based solutions. In addition, Iraq's financial institutions are hampered by legacy systems often unable to support modern solutions, increasing the complexity of implementing faster, more secure digital payment platforms. Replacing legacy infrastructure will allow financial institutions to enhance transaction speed, strengthen fraud prevention efforts, and expand their services in line with international payment standards.
Laying the Foundations for Digital Transformation
Over the past few years, the Iraqi government has taken crucial steps to address these challenges and modernise the financial system of one of the fastest growing economies in the Middle East. The Ministry of Planning, in collaboration with the Central Bank of Iraq (CBI), recently introduced mandates requiring financial institutions to upgrade their digital and technical systems. These upgrades are intended to align Iraq's banking sector with international standards, especially in the key areas of fraud prevention, anti-money laundering (AML), and cybersecurity.
In line with these modernisation efforts, the CBI is promoting digital financial services, particularly among younger age groups with higher smartphone adoption. This shift is expected to foster a generation more reliant on card payments and digital transactions, moving away from Iraq's dependency on cash. The CBI is also accelerating digital transformation by granting a higher number of licences to Payment Service Providers (PSPs) and introducing digital banking licences. These initiatives align with the CBI's goal of building a digital-first economy, paving the way for faster and more secure infrastructure in Iraq's financial industry.
As part of these ongoing efforts, Iraqi banks are adopting advanced cybersecurity defences to combat rising cyber threats as the country embraces digital transformation. Key measures include encryption, multi-factor authentication, AI-driven threat detection, and real-time monitoring. Banks are also enhancing access control with biometric authentication, securing online transactions with encryption and tokenisation, and implementing Security Incident and Event Management (SIEM) systems. Protecting both institutions and their users from these threats is key to building trust in Iraq's digital financial infrastructure.
Complementing these financial sector advancements, Iraq's e-government initiatives are digitalising public services, such as the Ministry of Interior's adoption of digital systems for processing visas and passports. Through collaboration between the Ministry of Interior and PSP partner Tabadul, Electronic Payment Gateways are being implemented, streamlining payments for e-visas and passports, and furthering the country's digital transformation.
The Key Role of Fintech in Iraq's Digital Transformation
Technology vendors are playing an essential role in Iraq's digital transformation journey. Companies like BPC, with global expertise and modern future-proven solutions, can help both startups and established financial institutions implement secure, scalable platforms that meet local regulatory requirements.
In addition, banks and payment providers in Iraq are increasingly collaborating with global fintech partners to enhance their fraud prevention capabilities. By integrating fintech solutions into their systems, they can offer more secure and reliable services to their customers, monitoring and preventing threads from both local and international bad actors.
For instance, Qi Card has enhanced its digital payment capabilities, allowing users to access government salaries and conduct transactions with biometric authentication. Similarly, Cihan Bank is pioneering mobile banking applications by providing customers with convenient access to their accounts.
Public sector support has been strong with the Kurdistan Regional Government's MyAccount initiative so far registering over 600,000 civil servants with their own bank accounts. The initiative aims to ensure one million civil servants have their own bank accounts with around 1,000 ATMs available across the region.
Additionally, BPC provides a platform that enables banks to issue digital payment cards, facilitate QR code payments, and enhance mobile banking solutions. These technologies are especially valuable in regions where access to traditional banking services is limited, helping to promote financial inclusion across the country.
The Road Ahead for Iraq's Financial Infrastructure
The introduction of mobile banking solutions, as demonstrated by fintechs including Zain Cash, has helped to bring financial services to underserved populations in Iraq. Zain Cash alone has onboarded over 1.2 million users, allowing them to make payments, send remittances, and conduct financial transactions without needing a traditional bank account. This growth in mobile wallets will to be a key driver in expanding access to financial services, particularly in rural areas where traditional banking infrastructure is limited, boating financial inclusion the country.
Furthermore, modernising Iraq's financial systems could significantly boost economic growth. Digital payments can formalise Iraq's economy and bring small and medium-sized enterprises (SMEs) into the banking system, whilst also enabling access to key financial tools. With SMEs making up 88% of businesses in Iraq, providing them with access to digital finance promises spur economic development and transform the Iraqi economy.
When do we get out of the rentier economy?
When do we get out of the rentier economy?
Jawad Al-Attar
The World Bank's report on Iraq's economic situation for the second half of this year and the first half of next year, released a few days ago, may be overlooked in the daily news cycle. However, it undoubtedly sounds alarm bells, as the economy is a fundamental component of any country's national security architecture.
Although government advisors downplayed the report's significance, asserting that Iraq's economic situation is robust and capable of overcoming any obstacles or shocks in global oil prices, the Ministry of Finance responded seriously to the report and is moving within a framework that may temporarily extricate us from the crisis. This includes approving budget schedules for the second half of this year that secure funding for salaries and ongoing projects, along with partial payments to investors and a relative deficit based on an oil price of $60 per barrel.
However, the question remains: When will Iraq's economy decouple from global oil prices? And when will we emerge from the crucible of a rentier economy?
These questions should be addressed by experts and decision-makers, and the country's politicians should bear the responsibility for accomplishing these tasks by, first, operating productive public sector companies; second, facilitating routine procedures for the private sector and foreign investors; through real decisions, not ink on paper; third, diversifying sources of income; through regulated irrigation agriculture, complementary and transformation industries, and balanced inter-trade with neighboring countries; and fourth, providing the enabling environment and requirements that meet the above requirements; in the shortest possible time.
A country that has managed to oust the occupation and defeat terrorism is capable of overcoming economic crises and achieving growth if the political will is realized and politicians overcome their differences, their pursuit of privileges, and their desire to win elections.
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