Mazhar Saleh: Evaluating Bank Boards Boosts The Economy And Investor Confidence
Time: 2025/05/29 22:07:38 Read: 1,935 times {Economic: Al Furat News} The Prime Minister’s financial advisor, Mazhar Mohammed Saleh, affirmed on Thursday that Prime Minister Mohammed Shia al-Sudani’s directive to re-evaluate bank boards is a strategic step to support the national economy.
While noting that government reforms will positively impact the quality of banking services, he noted that modernizing their structure will enhance transparency and increase investor confidence.
Saleh said in a press statement that “Prime Minister Mohammed Shia al-Sudani’s directives to re-evaluate the boards of directors of state-owned banks represent a strategic step toward restructuring the Iraqi financial system, in line with the current banking reform program.
He explained that this initiative aims to enhance banks’ ability to support the real economy and achieve comprehensive development goals.” He added, “The success of this step requires institutional consensus and ensuring the independence of financial decisions, in addition to optimal investment in national competencies in accordance with international governance standards.”
He emphasized that “re-evaluating the boards of directors of government banks, which control more than 80% of banking activity in Iraq,represents a fundamental entry point for launching broader reforms,including digital transformation, modernizing the settlement and payments infrastructure, strengthening oversight and reducing systemic risks, as well as improving compliance with International financial and monetary standards and providing an attractive environment for investment.”
He continued, “This step comes within the framework of a comprehensive study conducted by the global consulting firm Ernst & Young, which focuses on improving banking governance in the government sector, thus contributing to the restructuring of government banking entities to become more effective in supporting development, investment, and revitalizing the financial market.”
Saleh pointed out that “the Iraqi financial and banking system, especially the governmental one,
faces major challenges in terms of efficiency, transparency, and ability to support economic development.”
He stressed that the Prime Minister’s call to reconsider the composition of the boards of directors of government banks aims to correct the course and ensure a healthy environment capable of achieving the required reforms, through the effective application of governance and transparency standards and the efficient representation of decision-makers and government banking policymakers.”
The financial advisor expected that “the reassessment process will contribute to improving the speed and quality of financial decisions and enhancing risk management,
which will support the stability of the financial system and enhance transparency and accountability, thus increasing investor and public confidence.” He pointed out that “these reforms will have a positive impact on the quality of banking services provided, including improved payment, credit, and investment services.”
He stressed that “these measures are part of a comprehensive reform plan for the financial and banking system,
which contributes to advancing economic development by improving financial services and attracting investments, and enhancing the efficiency of financial institutions and resource management in line with the country’s financial and development policies.” https://alforatnews.iq/news/مظهر-صالح-تقييم-مجالس-المصارف-يعزز-الاقتصاد-وثقة-المستثمرين
Baghdad Conference Calls For International Cooperation To Combat Money Laundering
Economic 05/29/2025 Baghdad: Hussein Thaghab Participants in the Anti-Money Laundering and Combating the Financing of Terrorism conference agreed on the need for international cooperation to combat money laundering and terrorist financing crimes.
This was in light of the significant government support aimed at improving the status of Iraqi banks in accordance with international standards, and the United Nations‘ desire to restore Iraq to the international arena and influence.
Meanwhile, Iraq‘s international partners considered the cash sale system for foreign currency to beneficiaries to be the most optimal globally.
The Prime Minister‘s representative, Financial Advisor Dr. Saleh Mahoud, said in a speech:
“The conference represents an opportunity to build and strengthen confidence in Iraqi banks, given the government’s awareness of the importance of creating a robust banking system operating according to international standards.”
He highlighted the conference’s importance and its role in raising awareness among specialists in this field,especially with the increasing challenges facing governments in this area and the crimes it commits,which have negative repercussions on countries.
Saleh added that to address these challenges, countries are seeking to develop their anti-money laundering legislation and adopt guidelines, as weak legislation increases the incidence of crimes.
He emphasized that the government has taken significant measures to combat money laundering in line with international standards, reflecting the government’s commitment to developing effective financial performance.
He pointed to the role of the reforms adopted by the government in developing the financial sector and improving financial performance, as well as the significant successes achieved in combating money laundering and terrorist financing.
Governor of the Central Bank of Iraq, Dr. Ali Al-Alaq, noted that this conference affirms the continuation of the reform process and the fight against money laundering and terrorist financing in cooperation with relevant institutions.
He explained that money laundering crimes are a gateway to destabilizing countries, and therefore international cooperation with partners is essential to curbing these crimes.
Al-Alaq pointed out that the international assessment results revealed strengths in Iraq‘s favor in key areas.
The international report also highlighted weaknesses in some areas, and we have begun addressing them in a way that mitigates their risks.
This reflects Iraq’s commitment to international standards and building a secure banking system. He stressed that the Republic of Iraq has achieved significant results in strengthening the balances of Iraqi banks abroad in a way that keeps them away from problems.
Today, we have succeeded in opening accounts with correspondents.
The Central Bank has also introduced a cash sale system for foreign currencies exclusively for beneficiaries, which international partners consider the best in the world. Furthermore, the complete automation of work between the concerned parties has represented a qualitative leap in reducing suspicious transactions.
We are in the final stages of the process of linking with the relevant departments to complete the work successfully, and work to mitigate the sources of financial crime is ongoing.
Al-Alaq commended the Kurdistan Region‘s active participation in combating money laundering and terrorist financing, and the significant role this step plays in curbing and combating this activity.
He noted the efforts to employ artificial intelligence to regulate financial transactions, and the
ongoing restructuring and development of government banks in accordance with international standards, building them on modern and advanced foundations.
He also noted the significant successes achieved in developing electronic payments in accordance with international standards.
For his part, Wadih Al-Handhal, Chairman of the Iraqi Private Banks Association, stated that the conference addresses a significant topic in the financial landscape, and that its significance is heightened by the challenges facing Iraqi banks in their relationships with international banks.
He emphasized that most banks have adhered to transparency and compliance standards and continue to support the national economy. He added that they believe our banks are capable of making an effective comeback.
He noted that the banking sector is evolving and has an ambitious plan in the areas of compliance and money laundering, and that the two-day conference will discuss critical topics that will enhance financial performance in Iraq.
UN Secretary-General’s Special Representative, Mohammed Hassan, said the forum represents an important milestone in Iraq’s journey toward adopting a law to combat financial crimes. He added that the
United Nations believes in Iraq’s return to its rightful place among the nations of the world, and that
governance and compliance are important and imperative pillars. He added that we appreciate the efforts of the Central Bank and the Association of Banks to consolidate these pillars, and we recommend international partnerships to build national capabilities that will advance the financial sector.
He highlighted the importance of leveraging successful Arab and international experiences to integrate Iraq into the global financial system, explaining that technology is an urgent necessity at this time and must be coupled with a transparent legislative system.
Secretary-General of the Union of Arab Banks, Wissam Fattouh, emphasized the importance of adhering to international standards, which play a key role in strengthening Arab and international financial relations.
He also pointed to the need for international partnerships to develop the Arab financial sector, emphasizing that the goal is to build a secure, flexible, and independent banking sector that serves all sectors of the national economy.
Chairman of the Parliamentary Finance Committee, Dr. Atwan Al-Atouni, said:
“The conference addressed a topic that should receive significant attention, as it is part of global requirements that help respond to the global financial sector, preserve its integrity, and contribute to supporting development efforts.”
He emphasized that Iraq has made significant strides in this area, issuing important directives and creating human cadres with the expertise to enable it to reduce crime and adopt the best methods for combating financial crimes.
Ziad Khalaf, Vice Chairman of the Board of Directors of the Union of Arab Banks, explained that the
Iraqi banking sector faces challenges in opening accounts with international banks.
Despite banks’ compliance with the regulations, some international banks view Iraqi banks as requiring further compliance. He noted that Iraqi banks are capable of digital transformation, having achieved successes that surpass those of other banks in the region, and are looking forward to building financial institutions that will advance Iraq and serve its people.
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