US anger at Iraq if it uses Russia's payment system
Details from Ziad Al-Hashemi
Economic researcher Ziad Al-Hashemi said on Friday that the Central Bank of Iraq’s launch of the “National Card Scheme” system is a step towards strengthening financial sovereignty and reducing reliance on international payment networks. However, the similarity of this system to the Russian “Mir” system, which is subject to sanctions, may expose Iraq to international accountability and raise American reservations.
He pointed out that the lack of full commitment to security and compliance standards, and the lack of clarification of the nature of technical links with external systems, represents a potential loophole that could be exploited for suspicious financial activities. He called for enhancing transparency and raising the level of caution to avoid any external escalation or suspicions related to the use of this system.
Al-Hashemi stated in a post on the X platform:
The Central Bank of Iraq has decided to assert its sovereignty over electronic financial transactions within the country by launching the "National Card Scheme." This is a positive step, but it is not without loopholes that raise more than one question mark.
According to the bank's statement, the new system will not be linked to the Visa and MasterCard systems, but will use the same technologies as the Europay-MasterCard-Visa systems to ensure compliance with international standards and enhance security and efficiency.
The new system is somewhat similar to the Russian MIR system, which enhances national monetary sovereignty and significantly reduces reliance on global payment networks such as Visa and Mastercard, but at the same time, it is linked to some external domestic systems.
However, the Central Bank did not clarify whether the new electronic card system will adhere to security and compliance regulations such as PCI-DSS, or whether these regulations will be imposed on card users.
The lack of clear and full compliance with these standards may create future loopholes that could be exploited for innovative fraudulent operations, as has happened in the past.
The Central Bank of Iraq is also called upon to enhance the transparency of this system and raise the level of prudence to ensure there is no intention to bypass the global financial system. These measures are essential to enhancing the reliability, safety, and security of the new domestic system.
In the absence of these measures, the new local system will be subject to international scrutiny and accountability, especially if suspicious local transactions or direct or indirect ties to sanctioned payment systems such as Russia's Mir and Iran's Shtab emerge. link
