The Central Bank Governor of Iraq, Ali Alaq, announced the establishment of a joint committee between Iraq and the United States Treasury Department to address the banking challenges faced by Iraq.
The committee, formed during a meeting between the Iraqi delegation and the US Treasury Department, will comprise representatives from the Central Bank of Iraq, the US Treasury Department, and the US Federal Reserve.
One of the key focuses of the committee will be to address the sanctions imposed by the US Treasury Department on several Iraqi banks in the past.
Governor Ali Alaq expressed optimism about the ongoing efforts, stating that 80% of the central bank’s procedures for transferring money abroad have been successful. Plans are in place to address the remaining 20% by the end of the year.
Governor Alaq emphasized the importance of enhancing the technical capabilities of the banks and highlighted the collaboration with international financial institutions such as the International Monetary Fund. Additionally, a delegation from the World Bank is set to visit Iraq in the coming weeks.
In the previous year, the US Treasury Department levied sanctions on several Iraqi and Kurdistan banks for their involvement in activities such as attempting to smuggle dollars out of the country and money laundering.
