Exclusive-U.S. Treasury official says Iraq must act to avoid further action on banks

Employees walk at the headquarters of the Central Bank of Iraq in Baghdad, Iraq August 15, 2023. REUTERS/Ahmed Saad/File photo

BAGHDAD (Reuters) - Iraq's central bank must address continued risks of the misuse of dollars at Iraqi commercial banks to avoid new punitive measures targeting the country's financial sector, a top U.S. Treasury official said, citing fraud, money laundering and Iran sanctions evasion.

In July, the United States barred 14 Iraqi banks from conducting dollar transactions as part of a wider crackdown on the illicit use of dollars.