Iraq's Bank Restructuring Project: Commit, Merge, or Liquidate!
The Iraqi banking sector is witnessing an unprecedented transformation with the launch of a comprehensive reform project led by the Central Bank of Iraq (CBI), in collaboration with the global firm Oliver Wyman. The project aims to restructure the banking system and raise its efficiency in line with international best practices. The plan, which extends until 2028, seeks to reorganize the status of private banks and determine their future within the market through clear and well-defined paths.
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Economic expert Abdul Rahman Al-Shaikhly said, "The Iraqi banking system is currently witnessing a broad reform movement aimed at restructuring and organizing it in accordance with international best practices, under the direct supervision and strict oversight of the CBI."
Al-Shaikhly explained in a statement to Al-Mada that "the CBI is adopting a comprehensive reform roadmap extending until early 2028. It is being implemented in semi-annual phases, in cooperation with the global financial consulting firm Oliver Wyman, which has been contracted to undertake the reform and restructuring task."
According to the approved plan, the private banking sector, both commercial and Islamic, is given three basic options to determine its future path within the Iraqi financial system. These are: continuing to operate within the banking system, provided it fully complies with the required regulatory and technical standards; merging with another existing bank; or forming a new banking entity through a union between two or more institutions. In addition,
the Central Bank imposes non-refundable fees on banks that choose either the continuation or merger options, in exchange for monitoring and implementing reform requirements. The continuation option fee is estimated at $2.4 million annually, while the merger option fee is $1.2 million. Banks that decide to voluntarily withdraw and liquidate are fully exempt from paying any fees.
The new reform project comes amid growing local and international calls to restructure the banking system in Iraq, which has for decades suffered from chronic problems related to weak governance, low financial inclusion rates, and the majority of citizens' reliance on cash transactions outside the formal banking framework.
Iraq has more than 70 banks, including government, private, and Islamic banks. However, a large number of them lack the foundations of modern banking operations and face difficulties in adhering to international standards, particularly those related to combating money laundering and terrorist financing. This has exposed the country to pressure from international regulatory bodies, such as the Financial Action Task Force (FATF) and the International Monetary Fund. The Central Bank of Iraq (CBI) has launched several initiatives in recent years to stimulate the banking sector, but these have not achieved the desired impact. This prompted it to adopt a comprehensive reform plan in cooperation with the global firm Oliver Wyman, which has experience in reforming banking systems in numerous countries, including Jordan, Egypt, and Greece.
This step is viewed as a serious attempt to break with traditional banking practices that are no longer viable, especially in light of the economic and financial challenges facing the country and the increasing pressure to provide a transparent and efficient financial environment capable of attracting investment and enhancing monetary stability.
In light of these challenges, the Central Bank seeks, through the new project, to redraw the map of the banking sector by granting private banks specific options to continue operating, merge, or voluntarily exit the market. This step aims to liquidate weak entities and strengthen those capable of adhering to the required technical and regulatory standards.
Digital Transformation in Iraq: Confident Steps Towards E-Governance and Combating Corruption
As Iraq began its serious steps toward e-governance, it emerged as a strong competitor in various fields, including tracking dinar movements and combating corruption. These steps reflect a clear government will to bring about a digital transformation that strengthens the economy and serves citizens.
Tasnim International News Agency - As Iraq has taken steps toward e-governance, it has become a strong competitor in several areas, including tracking the movement of the Iraqi dinar and combating corruption.
inancial and economic expert Dr. Safwan Qusay told Tasnim: It is clear that Al-Sudani's government has moved towards investing in technology to track the movement of the Iraqi dinar and transactions. A platform has been launched, the "Our Platform," which works to ensure that all government units provide their services through an integrated system of the internet and intranet. This allows us to provide these services without any friction between citizens and employees using technology. This contributes to improving performance and, consequently, the possibility of establishing responsibility centers, whether internally or at the level of units in the private sector. This will contribute to accelerating the globalization of the Iraqi economy, especially as we face a set of challenges in transferring the Iraqi economy to the international environment.
Dr. Mohammed Al-Khazai, Director of the Union Center for Media Training, told Tasnim: The Iraqi government has made relative progress in some aspects of e-government, such as digital tax collection, such as the e-passport, and facilitating citizen transactions. However, it remains below the desired level due to the lack of an integrated infrastructure and the multiplicity of implementing agencies. This has hindered the comprehensive transformation of the digital project, not to mention the large amount of red tape and bureaucracy in paper transactions that continue to burden citizens.
Citizens interviewed by Tasnim News Agency in Baghdad expressed their hope that the culture of electronic payment would spread, contributing to the government's efforts to strengthen the Iraqi economy. They also expressed their support for any progress the government makes in serving citizens. Some said that electronic transactions have achieved a qualitative leap forward, contributing to the reduction of bribery.
The government, through the Ministry of Planning, indicated that these steps toward digitization, e-governance, and e-payment, which have become widespread in Iraq, mark the beginning of an era in which Iraq will compete with countries in the region, and even the world.
Abdul Zahra Al-Hindawi, the official spokesperson for the Ministry of Planning, told Tasnim: “The Iraqi government has a comprehensive approach to digital transformation within its development plans. This issue has been a significant component of the targets of the five-year development plan 2024-2028, as well as within Iraq’s Vision for Sustainable Development 2030. This is in addition to the focus of the current government’s program and the important measures taken by the state’s various institutions, sectors, and activities in this area.”
Thus, Iraq is advancing in the global rankings of countries operating in the field of electronic systems and electronic payments, in steps that have strengthened the government's capabilities and benefited citizens.
US sanctions 35 Iraqi banks over dollar violations
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The Echo Iraq Observatory, which specializes in economic affairs, revealed that 35 of the 72 banks operating in Iraq are now subject to sanctions imposed by the US Treasury Department, which include a ban on dealing in dollars.
The observatory explained that these banks are divided between local, Arab, and foreign banks, noting that sanctions are imposed for violations related to the use of the dollar or cooperation with banned entities.
The report indicated that the most recent bank to be sanctioned is the Baghdad International Bank, based on a report submitted by its former managing director to the US Treasury Department, detailing information related to illegal dollar transactions.
He added that the US Treasury Department is communicating with the Central Bank of Iraq regarding these allegations, and if a response is delayed or sufficient clarification is not provided, sanctions will be issued directly against the bank in question.
Over 30 Banks in Iraq Face US Sanctions Over Dollar Dealings
The Observatory stated that the sanctioned institutions included both Iraqi and Arab banks, which are now prohibited from conducting transactions in U.S. dollars.
The ECO Iraq Observatory announced on Wednesday that 35 of the 72 banks currently operating in Iraq have come under U.S. sanctions, primarily due to alleged violations involving U.S. dollar transactions.
The Observatory stated that the sanctioned institutions included both Iraqi and Arab banks, which are now prohibited from conducting transactions in U.S. dollars. The latest to be added to the list is the Bank of Baghdad, reportedly due to actions by a former executive director accused of providing misleading information.
According to the statement, the U.S. Treasury Department plans to officially notify the Central Bank of Iraq (CBI) and urge immediate action against banks implicated in unlawful dollar dealings or cooperation with blacklisted entities.
The report further warns that if the CBI fails to act on communications from the U.S. Treasury, it could also face financial repercussions.
The Central Bank of Iraq confirms the smooth operation of the Bank of Baghdad.
2025/8/6
Washington threatens sanctions against Iraqi entities and opposes the involvement of faction leaders in the elections.
The US State Department said on Wednesday that Washington opposes legislation in Iraq that would "transform it into a satellite state of Iran," threatening to impose sanctions on financial entities linked to armed groups.
US State Department spokeswoman Tammy Bruce told Shafaq News Agency that Washington "supports genuine Iraqi sovereignty, not legislation that would turn Iraq into a state subservient to Iran," noting that any law that undermines official security institutions "contradicts the goals of bilateral security assistance between the two countries."
Referring to a scenario whereby US sanctions would be imposed on Iraq, she said that the United States "will continue to take appropriate action against financial institutions that provide services to designated terrorist groups."
Regarding the announcement by some leaders of armed factions within the Popular Mobilization Forces (PMF) of their intention to participate in the upcoming elections and lay down their weapons, the spokeswoman said that Washington is "deeply concerned about the role of Iran-linked militias, including groups designated as terrorist organizations, which have targeted and killed Americans."
The Popular Mobilization Forces (PMF) were established in Iraq in mid-2014 under the "sufficiency jihad" fatwa issued by the country's top Shiite authority, Ayatollah Ali al-Sistani, following the fall of Mosul to ISIS. Thousands of fighters from armed factions, some of which were active before the fatwa, participated in its formation. Its primary role at the time was to repel the extremist group's rapid advance across large areas of northern and western Iraq.
In November 2016, the Iraqi parliament voted on a law legalizing the Popular Mobilization Forces (PMF) as a security institution within the armed forces. However, the law lacked clear organizational details, opening the door to repeated calls for its legal restructuring and reformulation.
The new attempt to enact a Popular Mobilization Forces (PMF) law comes at the end of the current parliamentary term, amid internal political divisions and international pressure, most notably from the United States, which opposes any steps that grant legitimacy to factions linked to Iran.
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still don’t believe in weather manipulation?
Iraq seriously considers rainmaking to address water crisis - official statement
Move to form a specialized technical team
The Parliamentary Agriculture Committee discussed the possibility of implementing an artificial rain enhancement project in Iraq, with the participation of university professors and agricultural and environmental experts. The committee noted the formation of a new technical committee affiliated with the Prime Minister's Office to prepare actionable recommendations, drawing on the experiences of regional countries that have achieved positive results in this field.
The Agriculture Committee, in a statement followed by 964 Network, said:
The Parliamentary Committee on Agriculture, Water, and Marshes, headed by MP Faleh Al-Khazaali, discussed the possibility of implementing an artificial rain-seeking project in Iraq during a dialogue session held on Sunday, August 3, 2025. The session was attended by a number of university professors and experts specializing in agricultural and environmental affairs.
The meeting came amid the escalating challenges facing Iraq in terms of water resources and climate conditions. Discussions focused on assessing the effectiveness of this technology and its suitability for the Iraqi environment. Experts delivered a scientific presentation on the technical foundations of rainmaking and expressed their willingness to support legislative efforts by offering scientific recommendations to fill gaps in current environmental laws.
For his part, the committee chairman emphasized the importance of learning from the experiences of regional countries that have adopted similar projects, emphasizing the need to activate coordination with relevant government agencies and follow up on the work of previous and current technical committees within the government concerned with rain enhancement. He also pointed to the importance of forming a specialized technical team tasked with developing a clear plan that includes implementable solutions that will enhance Iraq's ability to address the worsening water crisis.
The committee emphasized the importance of taking practical steps to address the water challenges facing Iraq. It emphasized the need to provide the committee with precise technical recommendations that would help address the environmental and agricultural impacts of water scarcity. It also emphasized the importance of approaching the Prime Minister's Office to obtain details of the work of the technical committee formed within the Advisory Board of the Prime Minister's Office regarding the rain enhancement project. The committee emphasized the importance of forming a new technical committee comprising a group of researchers and specialists, working according to a clear timetable to prepare implementable recommendations. It also emphasized the importance of leveraging the experiences of regional countries that have achieved positive results in this field, which would help Iraq adopt practical and sustainable solutions to the water crisis.
The meeting concluded with widespread praise from participants for the committee's efforts in addressing this vital issue, emphasizing the importance of continued cooperation between legislative and scientific institutions to achieve tangible results that serve the future of agriculture and water security in the country.
Parliamentary Finance Committee: Replacing employees with artificial intelligence is premature
Jamal Kocher, a member of the parliamentary finance committee, told Al Furat News that "the idea of replacing employees with artificial intelligence is not possible at the present time in Iraq," considering such talk "premature."
"The government cannot dispense with employees due to artificial intelligence," Kocher explained, noting that "more than 99% of the government and the public do not engage with artificial intelligence.
Will the end of the Russian-Ukrainian conflict tip the scales of gold, oil, and the dollar? An expert comments.
Antoine told Al Furat News that "the dollar is still considered the primary measure of security and stability in global economies." He added that it will not be easy to stop the Russian-Ukrainian war, despite significant mediation efforts, unless there are "other secrets between the parties."
He warned that "price fluctuations, stock market losses, and major scandals resulting from this war will lead to corporate bankruptcies, sharp declines, and price increases."
Antoine explained that "achieving global stability begins with ending wars," noting that "what Gaza is suffering represents a vivid example of the impact of conflicts on the economy."
The expert noted that "liberating peoples from the scourge of war is a fundamental step toward comprehensive economic stability, which positively impacts the well-being of peoples in various countries."
Last Tuesday, Trump announced that the deadline he had set for Russia to make progress toward ending the war in Ukraine would be 10 days, or he would impose new sanctions.
Trump threatened to impose new sanctions on Russia and impose 100% tariffs on countries that buy its oil—the largest of which are China and India—unless the Russian president agrees to a ceasefire.
Meanwhile, sources close to the Russian presidency (the Kremlin) ruled out the possibility that President Vladimir Putin would comply with US President Donald Trump's threat to impose sanctions if the deadline he set for him to end the war in Ukraine, which expires next Friday, expires.
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