Iraq’s sanctioned banks to lose Mastercard access abroad by April’s end

Shafaq News/ Mastercard services for several Iraqi banks will be suspended for international use by the end of April, a financial expert said on Wednesday.

Mahmood Dagher, a former Central Bank (CBI) executive, told Shafaq News that Mastercard cards issued by US-sanctioned banks will no longer function abroad after this month. "These cards will remain operational inside Iraq, but only in Iraqi dinars," he added.

Dagher noted that the suspension was initially delayed to allow continued usage through the end of April, but the halt will now proceed as scheduled.

Several Iraqi banks have faced US sanctions in recent years due to allegations of facilitating unauthorized dollar transfers abroad. These sanctions have disrupted access to foreign currency and contributed to volatility in the local exchange market, where traders have increasingly turned to the black market to meet demand.

According to financial analysts, Mastercard's decision stems from compliance concerns related to US restrictions on dollar transactions and efforts to limit currency smuggling. The move reportedly presents a growing challenge for Iraq’s financial infrastructure, which is under increasing scrutiny by international regulators.