REINALDO JC
IRAQ-CBI
The Central Bank of Iraq determines the controls for using bank cards INTERNATIONALLY
*Activation Delay: New cards for international use will be activated 30 days after issuance
*Implementation Date: The rules take effect on April 8, 2025 with periodic reviews planned.
Transaction Limits:
*Retirees: $10,000/month.
*Travel: $20,000/month (covers airfare, hotels, car rentals.
*Medical Treatment Abroad: $50,000/m.
*General Use: $5,000/m.
*Maximum limit for merchant bank cards: $20,000/m.
*Prepaid cards: Current limits remain unchanged.
*Foreign Currency for Travelers: Available at the official Central Bank rate via the e-governance system.
*MCC Codes: Merchant category codes will be shared with relevant authorities later
*Suspended Rules: Rules from April 20, 2020 are currently suspended but subject to review.
The Central Bank of Iraq directed its circular to a range of key financial entities to ensure broad compliance with the new regulations on bank card usage for INTERNATIONAL transactions. These entities include:
*Banking Supervision Department: Oversees the operations and compliance of bank of Iraq.
*Directorate of Supervision of Non-Banking Financial Institutions: Regulates non-bank financial entities like money exchangers or investment firms.
*Government & Private Banks: Covers all domestic banking institutions ensuring uniform application across the sector.
*Branches of Foreign Banks Operating in Iraq: Ensures the international banks active in the country align with these controls.
*Electronic Payment Services Companies: Includes firms handling digital transactions such as prepaid card issuers or mobile payment providers.
By addressing these groups
the Central Bank is signaling a comprehensive effort to enforce the new rules—effective April 8 2025 across Iraq’s financial ecosystem.
The CBI has outlined that it will supply the relevant authorities with Merchant Category Codes (MCC codes) at a later date specify which type of merchants align with the new bank card regulations for INTERNATIONAL transactions!!! LFG..