Shafaq News – Baghdad

35 out of 72 banks operating in Iraq have been subjected to US sanctions, the Eco Iraq economic observatory revealed on Wednesday.

The observatory stated that Iraq’s banking sector comprises Iraqi, Arab, and foreign-owned banks, noting that sanctions imposed by the US Department of the Treasury prohibit these institutions from conducting transactions in US dollars.

The report highlighted that the most recent bank targeted by sanctions was the Bank of Baghdad, allegedly due to a "tip-off" from its former managing director. According to the observatory, such measures typically begin with an email sent to the US Treasury, naming the bank in question and detailing alleged illegal dollar transactions or dealings with prohibited entities.

The report further noted that the Central Bank of Iraq responds to these inquiries from the US Treasury. However, if the response is delayed or deemed insufficient, the Treasury proceeds to impose sanctions on the bank concerned.