Prime Minister’s Advisor: Roadmap for Banking Sector Reform Within 24 Months
economy | 03:46 - 02/07/2026 Mawazin News - Follow-up The Prime Minister's financial advisor, Mazhar Muhammad Salih, confirmed on Thursday that the international expert team aims to end the isolation of Iraqi banks, noting that the increase in international correspondent banks is an indicator of the success of the reforms. Salih told the official newspaper, "Iraq is…
economy | 03:46 – 02/07/2026Mawazin News – Follow-upThe Prime Minister’s financial advisor, Mazhar Muhammad Salih, confirmed on Thursday that the international expert team aims to end the isolation of Iraqi banks, noting that the increase in international correspondent banks is an indicator of the success of the reforms. Salih told the official newspaper, “Iraq is a strategic country geographically, and it has begun to shift from geopolitical to economic geography, which focuses on production, resources, and economic relations between countries. ” He explained that “this shift requires a strong and cohesive financial and banking system, because financing precedes production and any economic activity. ”He added that “the banking system in Iraq has been affected by outdated structures and linked to past political circumstances, which has led to its distortion and its isolation from global integration. ” He pointed out that “reform necessitates a shift towards institutional compliance and the establishment of banks that operate according to governance and transparency and serve the real economy. ”He indicated that “restructuring the banking sector includes enhancing transparency and preventing the use of funds for purposes other than economic ones, as this harms international economic relations. ” He emphasized that “integration with the global financial system requires strong banks that adhere to international standards in management and supervision. ”Regarding the Financial Action Task Force (FATF), Saleh explained that it is “a semi-official organization established to combat money laundering and has evolved into a global benchmark setting standards for combating financial crimes. ” He noted that “adherence to these standards grants countries international respect and confidence, even though they are not directly legally binding. ”He added that “Iraq joined the Financial Action Task Force in the Middle East and North Africa in 2004 and established a Supreme Council for Combating Money Laundering and Terrorist Financing, chaired by the Central Bank. ” He pointed out that “strengthening compliance with these standards contributes to Iraq’s transition from the grey list to the white list. ”He explained that “the restructuring of private banks includes merging some and liquidating a limited number, while bringing in strategic partners from international banks, increasing capital, and adopting international auditing and accounting systems. ” He indicated that “these measures will raise the credit rating, enhance liquidity management, and reduce risks. ”Saleh emphasized that “the presence of experts from the US Treasury Department and international institutions falls within the framework of technical cooperation and has no bearing whatsoever on national sovereignty. ” He explained that “the objective is to reform the banking sector in accordance with international standards, especially given that the United States possesses the world’s largest financial market and exerts significant influence on the international financial system. ”He pointed out that “strengthening adherence to international standards is a fundamental aspect of improving the investment climate, as foreign investors avoid operating in gray areas that involve high risks. ” He stressed that “reducing risks requires a transparent and compliant banking system that precedes any economic activity. ”He pointed out that “Iraq is currently working on implementing a roadmap to reform the banking sector in cooperation with international auditing firms, and that the indicators during the next 24 months will witness a major change in the structure of the sector,” indicating that “the number of banks will decrease in exchange for an increase in capital, with the expansion of relations with international banks and an increase in the number of international correspondents, which is an indicator of the success of the reform process. ”https://www. mawazin. net/Details. aspx?jimare=285075