Tishwash: Central Bank Governor: We are working to consolidate the electronic payment infrastructure through five strategic projects.
The Governor of the Central Bank of Iraq, Ali Al-Alaq, announced today, Thursday, the development of rules and guidelines supporting the electronic payment system, revealing five major national projects aimed at consolidating the infrastructure for this system, as part of the move towards comprehensive digital transformation.
Al-Alaq said, during the “Comprehensive Transformation of Electronic Payment” conference, that “digitalization is no longer a luxury option, but rather a strategic necessity for building a modern state and a diversified economy, and achieving transparency in service provision.”
He stressed that “Iraq has a historic opportunity to make up for lost time and launch a new vision to combat corruption and stimulate investment.”
He explained that the Central Bank is working to develop an integrated and secure payment system that meets the highest international standards and enhances the efficiency of financial transactions, in cooperation with the government and within national initiatives that include salary localization, electronic immunization, and development financing programs.
Al-Alaq explained that the five main projects are:
The Instant Payments System: enables money transfers around the clock and provides a smooth and secure user experience.
The Unified Government Payments Portal: contributes to facilitating payment procedures and enhancing transparency.
The National Card Scheme: establishes an independent national system that preserves digital sovereignty and serves the local market.
Developing the National Operations Department: Enhances the ability to efficiently manage the increasing volume of transactions.
Regional and international partnerships: Aim to leverage the advanced tools of global payment networks. link
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Tishwash: Iraq’s Bank Restructuring Project: Commit, Merge, or Liquidate!
The Iraqi banking sector is witnessing an unprecedented transformation with the launch of a comprehensive reform project led by the Central Bank of Iraq (CBI), in collaboration with the global firm Oliver Wyman.
The project aims to restructure the banking system and raise its efficiency in line with international best practices. The plan, which extends until 2028, seeks to reorganize the status of private banks and determine their future within the market through clear and well-defined paths.
Economic expert Abdul Rahman Al-Shaikhly said, “The Iraqi banking system is currently witnessing a broad reform movement aimed at restructuring and organizing it in accordance with international best practices, under the direct supervision and strict oversight of the CBI.”
Al-Shaikhly explained in a statement to Al-Mada that “the CBI is adopting a comprehensive reform roadmap extending until early 2028. It is being implemented in semi-annual phases, in cooperation with the global financial consulting firm Oliver Wyman, which has been contracted to undertake the reform and restructuring task.”
According to the approved plan, the private banking sector, both commercial and Islamic, is given three basic options to determine its future path within the Iraqi financial system. These are: continuing to operate within the banking system, provided it fully complies with the required regulatory and technical standards; merging with another existing bank; or forming a new banking entity through a union between two or more institutions.
In addition, the Central Bank imposes non-refundable fees on banks that choose either the continuation or merger options, in exchange for monitoring and implementing reform requirements. The continuation option fee is estimated at $2.4 million annually, while the merger option fee is $1.2 million. Banks that decide to voluntarily withdraw and liquidate are fully exempt from paying any fees.
The new reform project comes amid growing local and international calls to restructure the banking system in Iraq, which has for decades suffered from chronic problems related to weak governance, low financial inclusion rates, and the majority of citizens’ reliance on cash transactions outside the formal banking framework.
Iraq has more than 70 banks, including government, private, and Islamic banks. However, a large number of them lack the foundations of modern banking operations and face difficulties in adhering to international standards, particularly those related to combating money laundering and terrorist financing.
This has exposed the country to pressure from international regulatory bodies, such as the Financial Action Task Force (FATF) and the International Monetary Fund. The Central Bank of Iraq (CBI) has launched several initiatives in recent years to stimulate the banking sector, but these have not achieved the desired impact. This prompted it to adopt a comprehensive reform plan in cooperation with the global firm Oliver Wyman, which has experience in reforming banking systems in numerous countries, including Jordan, Egypt, and Greece.
This step is viewed as a serious attempt to break with traditional banking practices that are no longer viable, especially in light of the economic and financial challenges facing the country and the increasing pressure to provide a transparent and efficient financial environment capable of attracting investment and enhancing monetary stability.
In light of these challenges, the Central Bank seeks, through the new project, to redraw the map of the banking sector by granting private banks specific options to continue operating, merge, or voluntarily exit the market. This step aims to liquidate weak entities and strengthen those capable of adhering to the required technical and regulatory standards. link
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Tishwash: Digital Transformation in Iraq: Confident Steps Towards E-Governance and Combating Corruption
As Iraq began its serious steps toward e-governance, it emerged as a strong competitor in various fields, including tracking dinar movements and combating corruption. These steps reflect a clear government will to bring about a digital transformation that strengthens the economy and serves citizens.
Tasnim International News Agency – As Iraq has taken steps toward e-governance, it has become a strong competitor in several areas, including tracking the movement of the Iraqi dinar and combating corruption.
inancial and economic expert Dr. Safwan Qusay told Tasnim: It is clear that Al-Sudani’s government has moved towards investing in technology to track the movement of the Iraqi dinar and transactions. A platform has been launched, the “Our Platform,” which works to ensure that all government units provide their services through an integrated system of the internet and intranet.
This allows us to provide these services without any friction between citizens and employees using technology. This contributes to improving performance and, consequently, the possibility of establishing responsibility centers, whether internally or at the level of units in the private sector. This will contribute to accelerating the globalization of the Iraqi economy, especially as we face a set of challenges in transferring the Iraqi economy to the international environment.
Dr. Mohammed Al-Khazai, Director of the Union Center for Media Training, told Tasnim: The Iraqi government has made relative progress in some aspects of e-government, such as digital tax collection, such as the e-passport, and facilitating citizen transactions. However, it remains below the desired level due to the lack of an integrated infrastructure and the multiplicity of implementing agencies. This has hindered the comprehensive transformation of the digital project, not to mention the large amount of red tape and bureaucracy in paper transactions that continue to burden citizens.
Citizens interviewed by Tasnim News Agency in Baghdad expressed their hope that the culture of electronic payment would spread, contributing to the government’s efforts to strengthen the Iraqi economy. They also expressed their support for any progress the government makes in serving citizens. Some said that electronic transactions have achieved a qualitative leap forward, contributing to the reduction of bribery.
The government, through the Ministry of Planning, indicated that these steps toward digitization, e-governance, and e-payment, which have become widespread in Iraq, mark the beginning of an era in which Iraq will compete with countries in the region, and even the world.
Abdul Zahra Al-Hindawi, the official spokesperson for the Ministry of Planning, told Tasnim: “The Iraqi government has a comprehensive approach to digital transformation within its development plans. This issue has been a significant component of the targets of the five-year development plan 2024-2028, as well as within Iraq’s Vision for Sustainable Development 2030. This is in addition to the focus of the current government’s program and the important measures taken by the state’s various institutions, sectors, and activities in this area.”
Thus, Iraq is advancing in the global rankings of countries operating in the field of electronic systems and electronic payments, in steps that have strengthened the government’s capabilities and benefited citizens. link
