THE CENTRAL BANK OF IRAQ ISSUES 9 RECOMMENDATIONS TO BANKS TO PREVENT FRAUD USING ARTIFICIAL INTELLIGENCE.
The Central Bank of Iraq warned licensed banks against forgery and fraud operations carried out through artificial intelligence technologies, and issued 9 recommendations in this regard, including biometric auditing of transactions and preventing data leakage abroad.
On February 22, 2026, the Central Bank of Iraq sent a letter to all licensed banks regarding artificial intelligence technology and its use in forging documents, indicating that developments in this technology have made it possible to forge documents, images, signatures, and official seals with very high quality, making them difficult to distinguish.
The Central Bank has provided several recommendations to banks to implement in order to avoid falling victim to fraud via artificial intelligence in their banking transactions.
1.One such method is to require banks to use technology based on biometric screening and automated document verification in banking transactions.
2.The recommendations also included the use of technology for detecting audio and video forgery (deepfakes) when scrutinizing photos, videos, and telephone communications to identify bank customers.
3.The Central Bank called for taking into account the risks of customer data being leaked abroad, and relying on local solutions to ensure full control over biometric data.
4.It also stressed the need to verify the authenticity of documents submitted electronically through official channels.
5.Among other recommendations is the need to sign agreements with the entities that supply banks with devices, ensuring that information is not disclosed and that its security is maintained.
6.The measures also included relying on quick response (QR) codes to verify the authenticity of documents sent from other parties, in addition to conducting periodic tests to simulate methods of combating fraud based on artificial intelligence.