US calls on Iraq’s Central Bank to tackle dollar abuse threats
A high-ranking official from the United States Treasury Department has issued a stern warning to the Central Bank of Iraq (CBI), urging immediate action to combat the persistent threats of dollar abuse within Iraqi commercial banks.
The aim is to safeguard Iraq’s financial sector from further turmoil and consequences.
The concerns raised by the US official encompass a range of issues, including instances of fraud, money laundering activities, and attempts to evade international sanctions, particularly those imposed on Iran.
This call to action from the United States comes shortly after a pivotal meeting between US Assistant Secretary of the Treasury Department, Elizabeth Rosenberg, and Iraq’s Prime Minister, Mohammed Shia Al-Sudani. During their discussions, they explored avenues of cooperation between financial institutions in Iraq and the US Treasury Department.
Of note, the meeting delved into the proactive steps taken by the Iraqi government to enact comprehensive financial and banking reforms, all aimed at curbing corruption in its various forms. This was confirmed in an official statement released by the Prime Minister’s Office (PMO).
Elizabeth Rosenberg commended the Iraqi government for its remarkable dedication to implementing financial and banking reforms. These reforms are seen as essential not only for Iraq’s pursuit of sustainable development initiatives but also for the expansion of its economic landscape.
It’s essential to recall that in July of the previous year, the United States initiated measures to bar transactions in US dollars involving 14 Iraqi banks. This move was part of a larger crackdown aimed at preventing the transfer of US currency to Iran and other nations under sanctions. The ban, implemented by the Treasury Department and the Federal Reserve Bank of New York, underscores ongoing efforts to limit Iran’s access to international financial networks.
The central objective of these US sanctions remains clear: to obstruct Iran’s ability to acquire US dollars through Iraqi financial institutions. By targeting these banks, the United States seeks to disrupt any potential flow of funds that could be employed by Iran in activities contrary to US interests, as outlined in a report from BNN Breaking.
Furthermore, it’s important to highlight that these sanctions form part of a comprehensive strategy to exert economic pressure on Iran. The ultimate goal is to deter Iran from participating in illicit financial transactions that could potentially fund destabilizing activities across the region.