Shafaq News/ The Iraqi Private Banks League announced on Thursday that the banks banned from dealing in U.S. dollars continue their regular operations, providing local banking services with complete freedom in the Iraqi dinar currency.

The U.S. Treasury Department sanctioned 14 Iraqi banks on Wednesday, July 19, as part of a crackdown on Iran's currency transactions.

In a press statement, the League clarified that these banks also retain the right to engage in international transactions using currencies other than the U.S. dollar, a confirmation that aligns with the Central Bank of Iraq's statement.

It stated that the Central Bank of Iraq had not frozen the licenses of the 14 banks subject to the sanctions.

" The affected banks are still fully functional, carrying out tasks such as deposit acceptance, loan granting, and other essential banking services."

The League emphasized that all these banks are backed by the Iraqi Company For Deposit Insurance, ensuring the safety of customer deposits.

On July 20, the Central Bank of Iraq downplayed the impact of the sanctions imposed by the United States on certain banks concerning the transfer of U.S. dollars outside the country. Additionally, the Central Bank attributed the surge in dollar exchange rates against the dinar to the activities of the black market.

According to the Wall Street Journal, "the move (of sanctioning the 14 banks) came after information revealing that the targeted banks were involved in money laundering and fraudulent transactions."

"Some of these operations may involve sanctioned individuals, raising fears that Iran will benefit from them."

A senior U.S. official told the Journal: "We have strong reason to suspect that some of these money laundering operations may benefit either individual subject to U.S. sanctions or to people who could be sanctioned."

Shafaq News Agency revealed exclusively that the sanctions affected the Islamic Advisor for Investment and Finance Bank, Islamic Al-Qurtas for Investment and Finance Bank, as well as the Islamic Al-Tayf Bank, Elaf Bank, Erbil Bank for Investment and Finance, International Islamic Bank, Trans Iraq Bank, Mosul Bank for Development and Investment, Al-Rajeh Bank, Sumer Commercial Bank, Trust International Islamic Bank, Ur Islamic Bank, Al-Alam Islamic Bank for Investment and Finance, and Zain Iraq Islamic Bank for Investment and Finance.

Furthermore, the U.S. Treasury Department blocked four other Iraqi banks from accessing the dollar last November and, in cooperation with CBI, imposed stricter controls on remittances in the country.

Additionally, In recent weeks, CBI has excluded four private Iraqi banks from the currency auction, namely: Al-Ansari, Al-Sharq Al-Awsat, Al-Qabedh, and Asia, following directives and warnings from the U.S. Treasury Department against these banks, accusing them of smuggling currency.