A Strategic Step Toward Reconnecting Iraqi Banks with the Global Financial System
A Strategic Step Toward Reconnecting Iraqi Banks with the Global Financial System
The recent announcement that seven Iraqi banks will be allowed to resume engagement with the global financial system marks an important development in Iraq’s ongoing banking-sector reform agenda.
Under the announced arrangements, the banks will be able to conduct transactions through international correspondent banking channels in foreign currencies, with the possibility of access to US dollar transactions at a later stage, subject to the applicable regulatory requirements and approvals.
The development reflects the progress made by the selected banks in strengthening their internal controls, governance arrangements, compliance frameworks and technological capabilities. It also signals a broader shift within the Iraqi banking sector toward greater alignment with international banking standards and regulatory expectations.
BDO Jordan & Iraq supported four of the seven banks during this process, working closely with their boards, senior management and executive teams across several areas of institutional reform. The support covered operational and technology audits, governance and risk management, regulatory compliance, cybersecurity, and the enhancement of institutional and technological readiness.
The progress achieved by these banks demonstrates the importance of coordinated efforts among regulatory authorities, financial institutions and specialised advisers. It also highlights the role of robust governance, effective control environments and sustained institutional investment in enabling banks to restore and strengthen their international banking relationships.
For Iraq’s banking sector, this step extends beyond the individual institutions concerned. It represents a positive indicator of the sector’s wider transformation and its gradual reintegration into the international financial system.
BDO Jordan & Iraq remains committed to supporting Iraqi banks throughout this transformation, drawing on its local market knowledge and international network to help financial institutions strengthen resilience, improve regulatory readiness and build sustainable connections with the global banking community.
Under the announced arrangements, the banks will be able to conduct transactions through international correspondent banking channels in foreign currencies, with the possibility of access to US dollar transactions at a later stage, subject to the applicable regulatory requirements and approvals.
The development reflects the progress made by the selected banks in strengthening their internal controls, governance arrangements, compliance frameworks and technological capabilities. It also signals a broader shift within the Iraqi banking sector toward greater alignment with international banking standards and regulatory expectations.
BDO Jordan & Iraq supported four of the seven banks during this process, working closely with their boards, senior management and executive teams across several areas of institutional reform. The support covered operational and technology audits, governance and risk management, regulatory compliance, cybersecurity, and the enhancement of institutional and technological readiness.
The progress achieved by these banks demonstrates the importance of coordinated efforts among regulatory authorities, financial institutions and specialised advisers. It also highlights the role of robust governance, effective control environments and sustained institutional investment in enabling banks to restore and strengthen their international banking relationships.
For Iraq’s banking sector, this step extends beyond the individual institutions concerned. It represents a positive indicator of the sector’s wider transformation and its gradual reintegration into the international financial system.
BDO Jordan & Iraq remains committed to supporting Iraqi banks throughout this transformation, drawing on its local market knowledge and international network to help financial institutions strengthen resilience, improve regulatory readiness and build sustainable connections with the global banking community.