Baghdad: Mustafa Obada
In light of the accelerating global economic challenges and the transformation of financial systems towards digitization, the Chairman of the Iraqi Private Banks League, Wadih Nouri Al-Handal, believes that Iraq today stands at the threshold of a crucial stage in its banking history, the key pillars of which are: reform, legislation, and human development.
In an exclusive statement that combined a strategic vision with a realistic tone, Al-Handal revealed a comprehensive two-year reform plan aimed at initiating a radical transformation in the infrastructure of the Iraqi banking sector, and building a modern financial environment that aligns with international standards, thereby enhancing Iraq’s position on the map of regional and international finance.
“We are working to reform the banking sector according to a clear, two-year roadmap that focuses on strengthening financial inclusion, raising the efficiency of banking institutions, and developing human resources,” Al-Handal stated, adding: “This reform is not superficial; it is fundamental, affecting every pillar of the banking system, from legislation to compliance, and from training to updating the digital infrastructure.”
The True Reform
The first issue Al-Handal focused on was the urgent need for comprehensive legal legislation that keeps pace with technical and financial developments. He explained that the absence of modern legislation leaves the sector exposed to challenges, hinders efforts to combat money laundering and terrorist financing, and weakens the banks’ ability to deal with global standards.
“Legislation is not an administrative luxury; it is the environment in which reforms grow, and if we do not keep pace with the world legally, we will fall behind digitally and financially,” he asserted.
He pointed out that the reform plan currently being implemented includes fundamental amendments to banking laws related to enhancing transparency, governance, monitoring fund flows, and linking banks to the international compliance system.
The Battle of Digitization
In parallel, Al-Handal places the file of training and qualifying human resources at the forefront of priorities, considering it a crucial key to the forthcoming banking renaissance.
“It is impossible to talk about financial inclusion or modern electronic payment systems without a bank employee who possesses the tools of digital knowledge, is proficient in reading data, analyzing sources of funds, and applying the ‘Know Your Customer’ principle,” Al-Handal stressed.
He emphasized that Iraqi banks need employees specialized in compliance rules, financial analysis, and emerging financial technologies (FinTech), noting that the League is working to launch training programs in cooperation with international organizations, which will cover various governorates over the next two years.
Iraq is Advancing
Speaking about the achievements, Al-Handal pointed to a qualitative step: the transition of Iraq from the “Grey List” to the “Follow-up Zone” in the classification of the Middle East and North Africa Financial Action Task Force (MENAFATF), considering this achievement to be not only the result of the Central Bank’s moves but the fruit of wide cooperation between financial institutions and the Banks League.
He said, “This classification is an international testimony that Iraq has begun to be viewed as a reliable financial environment, and that we are moving in the right direction in combating money laundering and terrorist financing.”
Al-Handal revealed that the rate of financial inclusion in Iraq currently exceeds 46%, a figure that places Iraq in an advanced position compared to previous years and paves the way for achieving an ambitious goal of reaching a rate between 90% and 95% in the coming years.
“We are working with the Central Bank as true partners to reach this goal, and the Arab Monetary Fund is monitoring our indicators positively, describing our mechanisms for implementing financial inclusion as among the best in the region,” Al-Handal clarified.
He noted that this progress opens doors for new segments of society to enter the formal financial system, which means reducing cash transactions, promoting the culture of electronic payment, and encouraging saving and investment.
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