The Central Bank of Iraq said meetings with the U.S. Treasury produced a shared understanding to return restricted Iraqi banks to external correspondent banking channels that are not linked to the U.S. dollar. Access is conditional on banks meeting approved compliance and governance standards and completing the first stage of the Central Bank of Iraq's banking sector reform and relicensing program. Governor Nizar Nasser Hussein said seven banks are currently eligible to return to those non-USD channels. The update sets out a staged route for broader market access. Banks that complete the remaining reform and relicensing requirements will later regain eligibility to conduct USD transactions once all related procedures and regulatory requirements are met. The Central Bank of Iraq also said it will continue comprehensive assessments of all Iraqi banks and strengthen supervision to ensure sustained compliance with international standards on governance, risk management and anti-money laundering and counter-terrorist financing. It said institutions that fail to meet those standards may face restrictions or suspension from international financial channels, or license revocation where necessary.
Central Bank of Iraq2026-07-18
Central Bank of Iraq reaches US Treasury understanding to restore seven banks to non-USD correspondent banking channels
The Central Bank of Iraq said an understanding with the U.S. Treasury will allow restricted Iraqi banks to return to non-USD correspondent banking channels once they meet compliance, governance and first-stage reform conditions. Seven banks are currently eligible for that step. Banks that complete further reform and relicensing requirements may later regain access to USD transactions.