Five Iraqi banks to be banned from US dollar transactions

Tehran [Iraq], February 17: Iraq's central bank will ban five more local banks from engaging in U.S. dollar transactions, a move that comes after meetings with U.S. Treasury officials in efforts to combat money laundering, dollar smuggling and other violations, two sources with direct knowledge of the matter told Reuters on Sunday.
The move comes after meetings in Dubai last week between officials from the Central Bank of Iraq - which last year already banned eight banks from U.S. dollar transactions - and U.S. Treasury and Federal Reserve officials, one of the sources said.
A rare ally of both the United States and Iran with more than $100 billion in reserves held in the U.S., Iraq relies heavily on Washington's goodwill to ensure that its access to oil revenues and finances are not blocked.
But OPEC's second-largest producer may find itself in the crosshairs after U.S. President Donald Trump said this month he would restore his "maximum pressure" policy towards Iran.
Iran views its neighbour and ally Iraq as an economic "lung" and wields considerable military, political and economic influence there through the powerful Shi'ite militias and political parties it backs. It also sources hard currency from Iraq through exports and avoids U.S. sanctions via its banking system.
Source: Fijian Broadcasting Corporation