CBI fines banks and institutions over 41B IQD in Q1 2025, marking a sharp decrease compared to the same period last year. The Central Bank of Iraq (CBI) announced that it imposed financial and administrative penalties on multiple banks and non-banking institutions, including currency exchange companies.
Between January and March 2025, fines totaled 41,268,578,075 Iraqi dinars, or roughly $31 million. This reflects a significant drop from the 138 billion dinars levied during the first quarter of 2024. Despite the decrease, the CBI continues to monitor and enforce strict compliance measures across Iraq’s financial sector.
In addition to monetary penalties, the CBI issued 54 administrative sanctions. These included formal warnings, written notifications, and deadlines for institutions to correct violations. The goal is to maintain a stable and transparent banking system.
March recorded the highest fines, totaling 28.7 billion dinars. That month also included 14 administrative actions. February, on the other hand, saw the lowest total fines at 4.6 billion dinars, even though it registered 25 administrative penalties.
The report highlights the Central Bank’s ongoing efforts to regulate the financial system. However, it did not disclose the names of the penalized banks or institutions. This lack of transparency has drawn criticism in the past, with some experts calling for greater public disclosure.
By issuing these fines and sanctions, the CBI aims to push financial institutions toward stronger regulatory compliance. Most of the violations involve delays in reporting, weak internal procedures, or breaches of foreign currency handling rules.
The steep decline in total fines compared to last year may signal improved compliance. It could also reflect a shift in enforcement strategy, with more focus on warnings and deadlines rather than heavy penalties.
CBI fines banks and institutions over 41B IQD in Q1 2025 also comes amid broader reforms in Iraq’s banking system. The Central Bank is currently working to modernize financial services, improve anti-money laundering controls, and support the national currency’s stability.
In summary, CBI fines banks and institutions over 41B IQD in Q1 2025 reflects three key outcomes. First, improved compliance across Iraq’s financial sector. Second, active oversight from the Central Bank. Third, continued reform in the country’s banking system.