Iraq revokes Iran’s Bank Melli operating license

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Iraq revokes Iran’s Bank Melli operating license

According to a Central Bank of Iraq (CBI) document verified by two authorities, the biggest bank in Iran, Bank Melli Iran, has had its operating license revoked by the CBI due to the bank’s restricted activity in Iraq.

According to the document released last week, the Iranian bank’s license was revoked by the CBI because of losses incurred in Iraq, operational restrictions, an inability to start or expand banking activities, and its participation in international sanctions, according to Reuters.

The US Department of the Treasury placed sanctions on Bank Melli Iran in 2018, alleging that the bank’s activities in Iraq were a component of an Iranian Revolutionary Guards conspiracy to supply funding to Iraqi militants.

Eight local commercial banks were prohibited from conducting transactions in US dollars in Iraq a few days after a senior US Treasury official visited, which decreased fraud, money laundering, and other unlawful uses of US currency.

According to Reuters, the Central Bank of Iraq (CBI), which is the main supplier of hard currency for Iraq and the target of an American effort against money smuggling into Iran, forbids the banks from taking part in its daily US dollar auction.

Iraq has almost $100 billion worth of oil reserves in the United States, so it trusts Washington to keep giving it access to funds and oil revenues.

As part of a crackdown on sending US dollars to Iran and other sanctioned nations, the US banned 14 Iraqi banks from transacting in US dollars in July.

This action demonstrates the continued attempts to restrict Iran’s access to global financial networks.