Iraqi parliament votes to lift sanctions on Kurdistan-based banks

The Iraqi lawmakers have voted to end sanctions imposed on banks operating in the country’s semi-autonomous Kurdistan region, some four months after the Central Bank of Iraq ordered private banks to halt their branches’ operations in Kurdistan following a highly controversial voting held in the region.

According to a report by by Iraq's Arabic-language al-Sumariah television network on Monday, Iraqi legislators approved that sanctions be lifted after they had “fulfilled their purpose” by enforcing federal controls on the Kurdish banking industry.

The move by the parliament now paves the way for the central government in Baghdad to enact the decision.

The sanctions included restrictions on dollar and foreign currency transfers and sales to four Kurdish-owned banks by the Central Bank of Iraq.

Following the provocative vote, Baghdad imposed a ban on direct international flights to and from the Kurdish region and called for a halt to its independent crude oil sales. The KRG at the time described such measures as “collective punishment.”

SS