32 banks targeted

Iraqi foreign minister seeks US reconsideration of sanctions on banks

2024-07-13 | 18:34

NEWSROOM — Iraqi Foreign Minister Fuad Hussein met with Brian Nelson, the U.S. undersecretary of the Treasury for Terrorism and Financial Intelligence, on Friday at the State Department in Washington, D.C. Hussein urged the U.S. to reconsider sanctions imposed on 32 Iraqi banks, assuring that these institutions have embarked on a “structural reforms process.”

Prime Minister Mohammed Shia al-Sudani had previously discussed financial and banking reforms with U.S. Treasury officials during his visit to Washington in mid-April. The U.S. has been pressing al-Sudani’s government to adopt effective measures to prevent the smuggling of U.S. dollars, particularly to Iran and its allies, and to regulate the operations of banks involved in such activities.

Hussein reiterated the Iraqi government’s commitment to advancing its reform agenda, particularly in the banking and energy sectors. “The government’s policy aims to achieve energy independence through associated gas investment projects and to develop the operational mechanisms of Iraqi banks in line with international standards to ensure transparency and provide open data,” a statement from Iraq’s Foreign Ministry said.

The sanctions on Iraqi banks are linked to allegations of their involvement in schemes benefiting Iran in sectors under sanctions.

Hussein also emphasized the importance of stabilizing the exchange rate of the Iraqi dinar against the U.S. dollar as a cornerstone for achieving economic, social, and political stability in Iraq. Despite these efforts, the Iraqi Dinar has still has seen fluctuations, with $1 breaking th 1500 dinar barrier last week after months of relative downwards movement. This volatility led al-Sudani to meet with representatives from currency exchange companies, averting a planned strike.

In response, Nelson praised the Iraqi government’s efforts to bolster the economy and address challenges, acknowledging “the seriousness of the Iraqi government” in updating operational mechanisms of its institutions. He reiterated the U.S. readiness to assist Iraq in overcoming obstacles to its reform efforts, which he said would positively impact the Iraqi economy.