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FRANK26: "D D D... DIGITAL DEFENDS DINAR"......F26
Iraq’s new fintech regulation: a deep dive into the 2024 Electronic Payment Services Law
The new headquarters of the Central bank of Iraq (CBI). Photo: Zaha Hadid Architects
July 9, 2025
Baghdad –
As Iraq’s digital economy grows rapidly—with over 10 million pre-paid cards and 20 trillion IQD in electronic transactions in 2024—the Central Bank of Iraq (CBI) has issued Electronic Payment Services Regulation No. (2) for 2024, replacing a 10-year-old law. This aims to support the country’s growing fintech sector.
The ALSAIF Law Firm (with 46+ years of experience) analyzed the law, which supports Iraq’s National Financial Inclusion Strategy, launched in May 2025 in cooperation with the World Bank Group, Arab Monetary Fund, and GIZ.
The new law defines roles in Iraq’s digital payment system:
Operators: Manage payment system infrastructure.
Participants: Licensed financial institutions using the system.
EPSPs (Electronic Payment Service Providers): Fintech and e-payment platforms offering services.
Agents: Represent EPSPs.
EPSPs are now officially allowed to:
Issue debit/credit cards
Manage digital wallets and mobile payments
Handle electronic fund transfers
Act as payment aggregators
The regulation sets a clear licensing process for companies entering Iraq’s fintech market. Requirements include:
Incorporation documents
Founder details
Proof of financial solvency
Minimum capital of 10 billion IQD
A 3-year feasibility study covering: financials, infrastructure, cybersecurity, AML policies, and dispute resolution.
CBI reviews applications in 90 business days, granting preliminary licenses while companies finish operational steps.
With a population over 45 million and MENA’s highest projected GDP growth in 2026 (4.4%), ALSAIF concludes this regulation lays the foundation for Iraq’s modern, inclusive, and investment-ready digital economy.