Fourteen Iraqi private banks sanctioned by the United States over allegedly helping siphon U.S. dollars to Iran said on Wednesday they were ready to challenge the measures and face audits and called on Iraqi authorities to provide assistance.
U.S. financial authorities last week barred 14 Iraqi banks from conducting dollar transactions as part of a wider crackdown on dollar smuggling to Iran via the Iraqi banking system, Iraqi central bank officials have said.Iraqi central bank Governor Ali al-Allaq said on Wednesday the institution was following up on the issue and he had no indication the U.S. would sanction more Iraqi banks.
The 14 banks have been banned from undertaking dollar transactions but can continue to use Iraqi dinars and other foreign currencies. Those measures are in line with U.S. regulations aimed at curbing the illegal siphoning of dollars to Iran and applying pressure on Tehran along with U.S sanctions imposed over its nuclear program and other disputes.
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