Decision came after months of uncertainty
KRG prime minister hails Federal Court decision on salary domiciliation
NEWSROOM – The Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani welcomed the Iraq Federal Supreme Court’s clarification on Wednesday, allowing the KRG’s MyAccount initiative to use both public and private banks for its salary domiciliation program.
Previously, the Federal Supreme Court designated government-run banks to conduct the salary domiciliation program, but the court’s clarification now permits all banks licensed by the Central Bank of Iraq to participate. This move will enable the KRG to continue its MyAccount project in line with Central Bank regulations, with plans to register all employees and salary recipients by the end of the year.
“Today’s progress allows us to accelerate the #MyAccount initiative and deliver on our promise of making one million citizens bankable by the end of the year. It also brings more certainty to the Erbil-Baghdad relationship and creates space to resolve other disputes,” PM Barzani posted on X. He urged KRG employees to “register [in the MyAccount initiative] as soon as possible.”
In a letter from Judge Jassim Mohammed Aboud, President of the Federal Supreme Court, addressed to the KRG prime minister, the court clarified that the salary banking process for employees of the Kurdistan Region “also includes banks licensed by the Central Bank of Iraq and their branches operating in the Kurdistan Region, leaving the choice of bank to the employee, similar to federal government departments and official federal entities in the Republic of Iraq.”
In a separate statement, the KRG noted that the Federal Court’s letter “represents a positive and fair step, granting employees in the region the freedom to choose the bank.”
MyAccount, the government’s flagship financial inclusion project, aims to digitalize the salary distribution process for over one million public sector employees. Since its launch in September 2023, eight banks have joined the initiative, including Iraqi Islamic Bank, BBAC, Cihan, NBI, Bank of Baghdad, RT, the Trade Bank of Iraq, and the International Development Bank.
Despite the program’s aims, many residents of the Kurdistan Region doubt its feasibility amid a prolonged economic crisis and extended periods without salary payments. Protests have taken place in the Sulaymaniyah and Halabja provinces, with participants advocating for their salaries to be managed through Iraqi banks instead of the MyAccount project.