Iraq Updates 03-08-2025

Central Bank: Comprehensive digital transformation in the financial sector is coming soon

The Governor of the Central Bank of Iraq, Ali Al-Alaq, stated today, Saturday, that Iraqi banks are close to transforming into smart platforms using artificial intelligence, noting that Iraq will witness a comprehensive digital transformation in the financial sector. Al-Alaq confirmed, in a statement to the official agency, that “Iraq has made great strides in activating electronic payment methods, which is an essential step in digital transformation,” noting that this stage will be overcome soon, as current electronic payment tools and methods are witnessing very rapid development.

Al-Alaq explained that in the near future, a big difference will be observed in the tasks of banks, as the nature of their work will change radically, stressing that banks will transform into smart platforms that organize financial operations using modern technologies and artificial intelligence.

He also added that every citizen will have a digital financial identity that will enable him to carry out many financial transactions easily, such as viewing balances or making investments inside and outside Iraq.

He stressed that the Central Bank is working on developing a digital currency under its supervision, noting that this currency will be different from cryptocurrencies that are not subject to the supervision of central banks.

He explained that this digital currency will be part of the Central Bank’s efforts to combat corruption, money laundering and terrorist financing, as it will provide a tight and transparent financial system that helps monitor all financial operations.

Al-Alaq also stressed that this approach will provide solutions to major economic, financial and social problems, and will also allow digital currency holders to conduct extensive financial transactions, even outside Iraq.

He added that Iraqi youth will greatly benefit from these modern financial tools, noting that many of them invest through these portfolios and tools in various fields outside Iraq.

At the same time, he warned that fraud may occur, explaining that the Central Bank is working to protect citizens from these risks.

Iraq extradites suspects in ‘theft of the century’ from Kuwait

The Iraqi Integrity Commission announced on Saturday the extradition of two of the accused in the case of stealing tax deposits, known in the media as the “theft of the century”, from the authorities in the State of Kuwait.

The Authority stated in a statement today that it was able to recover the managing director of a private company for general trade and contracting limited and his agent accused in the case of stealing tax deposits, noting that their role in the case was to receive very large sums of money in order to facilitate the procedures for disbursing the stolen deposits.

The Authority noted its procedures that resulted in the extradition of the accused, which consisted of organizing an extradition file against them and sending it to the Public Prosecution Office, explaining that after follow-up and coordination with the relevant authorities, including the Arab and International Police Directorate at the Ministry of Interior and the efforts of the Iraqi Embassy in the State of Kuwait, an international red notice and search warrant were issued against the accused.

She pointed out that they were arrested in the State of Kuwait, which handed them over to the Republic of Iraq through diplomatic channels.

She pointed out that the judge of the Second Karkh Investigation Court had previously issued an arrest warrant against the accused, based on the provisions of Article (11/444) of the Penal Code, after reviewing the testimony of some of the accused in the case and the witnesses.

At the end of 2024, the Iraqi judiciary issued an in absentia prison sentence for a number of defendants accused of stealing tax deposits, known in the media as the “theft of the century,” including the first defendant, Nour Zuhair, and a former MP.

According to a judicial source, who spoke to Shafaq News Agency, “The Karkh Criminal Court for Combating Corruption settled the cases related to the theft of (tax deposits), and issued sentences of ten years in prison against the accused Nour Zuhair, six years in prison against the accused Raed Juhi, and a number of employees who participated in the crime, and three years in prison against the former member of the House of Representatives, Haitham Al-Jubouri.”

In 2022, it was announced that more than 3 trillion Iraqi dinars ($2.5 billion) had been lost from tax deposits, through a coalition of 5 oil companies using fictitious bonds.

Following this, an order was issued to summon officials close to former Prime Minister Mustafa Al-Kadhimi, including Finance Minister Ali Allawi, the Director of the Prime Minister’s Office, Raed Juhi, and others.

On October 24, 2022, Nour Zuhair was arrested, as he heads the board of directors of one of the companies involved in the case, and was later released on bail, after Prime Minister Mohammed Shia al-Sudani announced the recovery of 5% of the amount, in exchange for Nour Zuhair’s pledge to hand over all the stolen amounts within days.

The Anti-Corruption Court set August 14, 2024 as the date for Nour Zuhair’s trial, but the trial was postponed several times due to the defendant’s absence.

MOT: A total of 26 airport development projects will be implemented