CBI tightens rules for state bank advisers
Shafaq News- Baghdad
Iraq’s central bank (CBI) has tightened oversight of advisers at state-owned banks, requiring licensed financial institutions to clearly define consultants’ responsibilities and keep their roles separate from executive management, Shafaq News learned on Saturday.
In an official circular, the CBI noted that the rules apply to both Iraqi and foreign advisers, stressing that experts cannot be given authority to perform executive duties. They are also barred from holding positions or serving on the board of the bank they advise or any other bank supervised by the CBI.
Financial institutions will bear legal responsibility for any violations of the directive, according to the circular.
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An informed source also told Shafaq News that some advisers had received substantial payments and benefits, while allegations had emerged that bribes were offered to certain consultants.
Other cases involve specialists who were believed to have followed up on, promoted or facilitated banking transactions, raising potential concerns about conflicts of interest and blurred lines of responsibility.
The source also pointed to individuals who allegedly had little attendance or no clearly defined duties corresponding to their contracts, despite receiving substantial compensation.
“Some contracts may have resulted from favoritism, personal connections or ties to administrative officials,” he said, calling on the government, parliament and the Finance Ministry to review advisory and expert contracts at state-owned banks.
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