Central Bank reform measures face resistance from MPs

The Governor of the Central Bank of Iraq faces political pressure as the debate over recent banking reforms and anti-money laundering measures draws increasing public and parliamentary scrutiny.

The controversy centers on the CBI’s decision to reduce the threshold for real estate purchases requiring a bank transfer. Previously set at 500 million IQD, the threshold has now been lowered to 100 million IQD (around $77,000). This move is part of the CBI’s ongoing efforts to combat money laundering and terrorism financing.

Until last year, properties of any value in Iraq could be purchased with cash. However, in 2024, the CBI introduced a regulation that required property transactions above 500 million IQD to be conducted through a bank transfer before the real estate deed could be issued by the Ministry of Justice’s Real Estate Directorate. Last week, the CBI made the decision to lower this threshold even further.