Central Bank warns of fraud schemes involving fake $1 million US notes

BAGHDAD — The Central Bank of Iraq on Monday warned of fraud schemes targeting citizens for financial gain, urging the public to exercise caution, particularly regarding a so-called $1 million U.S. banknote being sold as legal tender when it is in fact a non-circulating commemorative note.

The bank said it had “monitored a number of fraud and scam operations carried out by individuals with weak morals against citizens for material gain.”

Some individuals are selling a one million dollar note as legal currency when it is actually a commemorative note not in circulation, the bank said, stressing that the highest denomination of U.S. currency in circulation is $100.

Others promote black papers cut to the same dimensions as a $100 bill, claiming they are genuine notes coated with a black substance that can be removed. “There is absolutely no truth to this,” the bank said.

The statement also warned of the marketing of withdrawn banknotes from several countries that have no monetary value, which are exchanged for large sums in Iraqi dinars.

The bank further cautioned against replica or printed U.S. dollar and Iraqi dinar notes bearing words such as “invalid,” used as children’s toys but promoted as genuine currency.

The Central Bank said it had informed relevant authorities to prevent the printing or import of such notes into Iraq.

In December 2025, Iraq’s National Security Service dismantled a currency-forgery and smuggling network in Basra and arrested three suspects, including a foreign national accused of moving counterfeit money into the country.

Iraq’s Interior Ministry claimed in late September that counterfeit currency crimes have fallen by 85 to 90 percent in 2025 compared with previous years.