ERBIL, Kurdistan Region - Iraq's union representing licensed currency exchange companies said on Wednesday that recent bulk cash smuggling cases uncovered by security forces were carried out by "criminal networks" operating outside of the country's regulated financial sector, distancing licensed exchange firms from the alleged crimes.
Dhia al-Taie, head of the Iraqi General Union of Currency Exchange and Intermediary Companies (GAMC), told Rudaw's Malik Mohammed that the suspects arrested in recent operations "do not in any way represent licensed financial institutions or currency exchange companies operating under the supervision of the Central Bank of Iraq."
His remarks came days after the Iraqi National Security Service (INSS) announced it had dismantled several currency smuggling networks, including a group accused of illegally transferring more than $1 million between Baghdad and Sulaimani using Mastercard bank cards. Authorities also announced arrests on Sunday in Kirkuk, Basra, and Nineveh as part of a broader crackdown on illicit financial activity.
The arrests constitute Iraq's nationwide efforts to tighten control over foreign currency flows, combat money laundering, and stabilize the country's financial system. Iraqi authorities have stepped up enforcement against illegal transfers as the government seeks to ease pressure on the exchange rate and align its banking best practices with international standards.
Taie said licensed exchange companies fully comply with Central Bank of Iraq (CBI) regulations on anti-money laundering and counterterrorism financing, adding that they remain under continuous regulatory oversight.
"Licensed companies are fully committed to implementing the Central Bank's instructions and are ready to coordinate with supervisory and security authorities to confront any illegal activity, with the aim of protecting market stability and safeguarding the national economy," he said.
Regarding the Central Bank's recent decision to reduce the monthly dollar allocation for travelers from $3,000 to $2,000, Taie said the measure should not be interpreted as a shortage of Iraq's foreign currency reserves.
Instead, he said, the decision is part of the Central Bank's policy to improve the management of foreign currency sales, encourage electronic payments, and bring Iraq's banking system in line with international best practices.
On Sunday, the INSS reported that intelligence-led operations resulted in the arrest of several suspected currency courier networks across Iraq.
Security forces seized hundreds of bank cards, POS devices, counterfeit currency, and large amounts of Iraqi dinars and US dollars during the operations.
The crackdown comes as Iraqi authorities continue broader anti-corruption and financial crime investigations while seeking to curb illegal dollar transfers that officials say have contributed to pressure on the country's parallel currency market.
.png&w=3840&q=75)