US Consulate General in Erbil encourages Kurdistan Region's citizens to open bank accounts

ERBIL (Kurdistan24) – In an official post in the Facebook account of the US Consulate General in Erbil, it is stated that citizens of Kurdistan Region could protect their capital from theft, loss and all financial crimes if they open their personal bank accounts.

It is also mentioned in the post that the new services provided by the banks increase the potential for investment. It increases the international confidence in the citizens of Iraq and Kurdistan Region, and it is the most secure way to protect the capital from being subject to financial wrongdoings, theft and loss.

The statement adds that “the informal money transfer services are detrimental to local economies.”

Additionally, the statement clarifies that according to the World Bank, in 2021 only “18.57% of Iraqis above the age of 15 held an account at a financial institution. This is one of the lowest in the Middle East and North Africa region, which averages roughly 53%”.

Furthermore, the US Consulate maintained that the continued reliance on use of and dependence on cash and informal money transfer services is harmful to the economy because it diminishes the prospects of financial regulation necessary to convince reputable international firms to conduct business in Iraq and Kurdistan Region.

“Over the past two years, the U.S. government has worked with Iraq to build back trust in the banking sector and reform transfer mechanisms related to imports financed through Iraqi banks,” the post explained.

The statement concludes that the new reforms encourage the proper registration of businesses and increase the use of formal banking channels. “According to the Central Bank of Iraq, in the past two years the total deposits held with Iraqi commercial banks have risen by about 37%, and from 2021 to 2022, the total number of accounts at Iraqi banks has risen 31%.”

The Kurdistan Regional Government’s (KRG) Ministry of Finance and Economy announced in January that the first phase of the MyAccount initiative in Erbil province has reached its final phase, and approximately 190,000 civil servants in Erbil province have registered in the program.

MyAccount Initiative is the KRG's financial inclusion program which aims to provide public sector beneficiaries with a safe and convenient way to access their salaries.