Iraq Ramps Up Banking Reforms Ahead of Incoming Trump Administration

Prime Minister Sudani issued a new directive today aimed at expanding and modernizing banking services across the country's provinces. The initiatives include increasing bank branches in underserved areas, mandating digital banking technologies, tailoring financial products for individuals and small businesses, and enhancing financial inclusion, particularly in rural communities. Additionally, the plan emphasizes public financial literacy through awareness campaigns and training for young entrepreneurs.

This initiative should be seen in part as a proactive measure in anticipation of potential policy shifts under the incoming Trump administration, which is expected to adopt a stricter stance on global financial compliance. The new US administration could impose severe repercussions on Iraq’s banking sector if it is perceived as failing to meet international standards in anti-money laundering (AML) and countering the financing of terrorism (CFT). By implementing reforms that enhance oversight, transparency, and inclusion, the Iraqi government may be aiming to preemptively safeguard its financial institutions against potential sanctions or restrictions.

Here’s a full translation of the directive: