A senior US Treasury Department official as saying on Thursday that the Central Bank of Iraq must address the ongoing risks resulting from the misuse of the dollar in Iraqi commercial banks in order to avoid imposing new punitive measures targeting the country’s financial sector, pointing to acts of fraud, money laundering and evasion. Iran from sanctions.
The official, who spoke on condition of anonymity, stated that “there are still other Iraqi banks operating with risks that ‘must be addressed’ despite the campaign.”
The official added that the action his country took in July was based on clear indications of illegal financial activity.
He explained, “The alleged crimes being considered by the Treasury Department include acts of money laundering, bribery, extortion, embezzlement, and fraud.” With reserves of more than $100 billion in the United States, Iraq relies heavily on Washington’s good faith to ensure that its oil revenues and funds are not subject to US sanctions.
In July, the United States prevented 14 Iraqi banks from conducting transactions in dollars as part of a broader campaign against the illegal use of the American currency.