Shafaq News / On Saturday, the Iraq Stock Market Investors Association appealed to the Central Bank of Iraq (CBI) to reconsider fines and provide compensation to shareholders of banks that have declared bankruptcy.
Alaa al-Mousawi, the Association's President, stated, "The financial penalties imposed by the CBI on banks and non-banking financial institutions during the first half of 2023 exceeded 66 billion dinars."
He added, "We have previously suggested that the fine amount be returned to the bank after it complies with the legislations and instructions for which the fine was imposed," emphasizing that "the fine amount is paid from the rights of shareholders."
The Association's President proposed that "the CBI utilize these amounts to compensate shareholders, especially small shareholders, of banks that have been declared bankrupt and are undergoing liquidation procedures, such as Dar al-Salam Bank."
It is noteworthy that the US has imposed sanctions on 14 Iraqi banks as part of a broader crackdown on the flow of US currency to Iran.
According to officials cited by the Wall Street Journal, the ban, enforced by the Treasury Department and the Federal Reserve Bank of New York, aims to prevent these Iraqi banks from engaging in dollar transactions, highlighting the US government's efforts to curb Iran's access to international funds.
Exclusive sources revealed to Shafaq News Agency that among the 14 banks subjected to the sanctions are Al Mustashar Islamic Bank for Investment and Finance, Al Qurtas Islamic Bank for Investment and Finance, Al Taif Islamic Bank, Elaf Bank, Erbil Bank for Investment and Finances, International Islamic Bank, Iraq Trans Bank, Mosul Bank for Development and Investment, Rajih Bank, Sumer Commercial Bank, Trust International Islamic Bank, Ur Islamic Bank (Al Mal Islamic Bank), World Islamic Bank for Investment and Finance, and Zain Iraq Islamic Bank for Investment and Finance.
Recently, CBI excluded four private Iraqi banks, namely Al-Ansari, Al-Sharq Al-Awsat, Al-Qabid, and Asia, from the currency sale auction following directives and warnings from the U.S. Treasury, which accused these banks of currency smuggling.