Iraq’s Banking Sector Enters a Broader Phase of Reform
Wadih Al-Handhal, Chairman of the Iraqi Private Banks League, said Iraq’s banking sector is undergoing a broad reform process aimed at strengthening compliance and governance standards and rebuilding ties with the global financial system.
He explained that allowing seven qualified Iraqi banks to resume access to international correspondent banking channels in currencies other than the U.S. dollar represents an important step toward expanding trade finance channels and enhancing competition within the banking sector.
Through these channels, Iraqi banks will be able to conduct commercial transactions with various countries using major international currencies, potentially reducing some of the complexities associated with foreign trade.
Al-Handhal stressed that the banking reform process is being implemented in stages, adding that the resumption of U.S. dollar transactions requires banks to fulfill the regulatory and compliance requirements established by the relevant authorities.
The current phase of reform includes restructuring the banking sector, strengthening governance frameworks, improving anti-money laundering (AML) procedures, and enhancing banks’ capacity to finance Iraq’s national economy.