IraqiPrime MinisterOrders Measures to Promote Electronic Payments

Iraqi Prime Minister Mohammed Shia al-Sudani has ordered a series ofmeasures, electronic, paymentsto promote the use of electronic payments and point-of-sale (POS) systems in the country. The goal is to limit cash transactions, enhance security, and reduce fraud in Iraq's payment systems. Under the new directives, educational institutions, medical facilities, hotels, restaurants, and other businesses must adopt e-payments to renew their licenses.

Why this matters: The shift towards electronic payments has significant implications for Iraq's economic development and its ability to integrate with the global financial system. The shift towards electronic payments has significant implications for Iraq's economic development and its ability to integrate with the global financial system. By reducing reliance on cash transactions, Iraq can increase transparency, combat fraud, and create a more secure financial environment, thereby attracting foreign investment and driving economic growth.

The Central Bank of Iraq will play a key role in this initiative by establishing e-payment standards for government institutions and outlining minimum requirements for e-wallets. Collaboration between government agencies, the private sector, and banks will be essential in expanding e-payment options for Iraqi citizens and businesses. A joint task force will conduct inspections to verify that businesses are displaying their tax IDs and e-payment options as required.

To address security concerns, Prime Minister al-Sudani has tasked relevant authorities with tackling electronic payment fraud. A joint committee will be formed to oversee these efforts and ensure the integrity of the system. "The measures aim to limit cash transactions, establish a joint committee to address security concerns, and reduce mobile payment fees," according to the directly related summaries.

These measures follow similar directives issued by the Iraqi government in October 2023, signaling a sustained effort to modernize the country's payment systems. By reducing reliance on cash transactions, Iraq aims to combat fraud, increase transparency, and align with global trends in digital payments. The push for electronic payments comes as Iraq seeks to rebuild its economy and attract foreign investment in the wake of years of conflict and instability.

However, implementing these changes may prove challenging given Iraq's long history of cash-based transactions and the need to educate both businesses and consumers about the benefits of electronic payments. The government will need to work closely with interested parties to ensure a smooth transition and address any concerns that may arise. As Iraq moves forward with its electronic payment initiative, monitoring progress and making adjustments as needed will be important for the success of this effort.

The success of Iraq's electronic payment initiative could have far-reaching implications for the country's economic development and its ability to integrate with the global financial system. By modernizing its payment systems and reducing reliance on cash transactions, Iraq is taking a significant step towards combating fraud, increasing transparency, and creating a more secure financial environment for its citizens and businesses.

Key Takeaways

• Iraq's PM orders measures to promote electronic payments and POS systems.
• Goal is to limit cash transactions, enhance security, and reduce fraud.
• Businesses must adopt e-payments to renew licenses, starting with education, healthcare, and hospitality.
• Central Bank of Iraq to establish e-payment standards and minimum requirements for e-wallets.
• Initiative aims to increase transparency, combat fraud, and attract foreign investment.