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Iraq: fintech & payments regulation

Regulated

Iraq fintech & payments: CBI oversight of e-payments; CMA licensing for securities intermediaries

Lead regulator:
Central Bank of Iraq (CBI)
Key law:
Interim Securities Markets Law No. 74 of 2004; CBI Electronic Payment Guidelines
Last updated:
2026-07-12

The Central Bank of Iraq (CBI) regulates electronic payment services and banking transactions, requiring licensed providers to monitor and report suspicious activities under specific guidelines. The Iraqi Securities Commission (ISC/CMA) oversees securities markets, licensing brokerage firms, custodians, and other intermediaries under a series of regulatory bylaws.

Licensing for securities activities is strictly controlled, with specific bylaws governing capital adequacy, operational requirements, and branch establishment for brokerage and custodian entities. The regulatory framework has evolved to include provisions for foreign market access and corporate governance standards.

Recent developments include the approval of listings for electronic payment service providers and the issuance of updated fee schedules and licensing rules for 2025. The regime remains fragmented between payment services (CBI) and capital markets (ISC), with no unified fintech law explicitly covering all digital financial services.

The regulatory direction emphasizes stricter compliance, capital requirements, and operational transparency for licensed entities. Foreign participation is permitted under specific conditions, subject to home-regulator approvals and local licensing.

Who regulates

  • Central Bank of Iraq

    Primary supervisor for banking and electronic payment services

    [1][2]

  • Iraqi Securities Commission

    Primary supervisor for securities markets, brokerage, and custodian licensing

    [3][4][5][6][7]

Core laws & rules

  • Interim Securities Markets Law No. 74 (2004)

    Establishes the Iraq Stock Exchange and the Iraqi Securities and Exchange Commission, defining the regulatory framework for securities trading and licensing.

    [7][8]

  • CBI Guidelines on Suspicious Transaction Indicators (2020)

    Mandates monitoring and reporting of suspicious activities for electronic payment service providers.

    [2]

Licensing & registration

  • Securities Brokerage

    Strict licensing framework for domestic and foreign brokerage firms, including capital adequacy and operational requirements. Capital: 75 million IQD (for foreign trading license); 50 million IQD (for branch expansion) Timeline: 2023-2025

    [5][6][9][10]

  • Custodian Entities

    Licensing framework for safekeeping institutions with strict eligibility and capital criteria. Capital: Not specified in summary Timeline: 2022-2025

    [3][11]

  • Electronic Payment Services

    Licensed providers subject to CBI oversight and AML/CFT reporting requirements. Capital: Not specified in summary Timeline: 2020-2025

    [2][1]

Restrictions & warnings

  • Foreign brokerage firms must obtain home-regulator no-objection certificates and meet specific operational and financial requirements to trade on the Iraq Stock Exchange via the Tabadul platform.

    [4][12]

  • Electronic payment service providers must monitor and report fifteen specific suspicious transaction indicators aligned with AML/CFT standards.

    [2]

Direction of travel

  • Regulatory framework is evolving with updated bylaws for 2025, emphasizing stricter capital and operational standards for securities intermediaries and continued oversight of electronic payments.

    [3][5]

  • Expansion of securities market infrastructure, including branches in the Kurdistan Region and listings for payment service providers, indicates a direction towards broader market integration and transparency.

    [13][14]

Sources

  1. Guide to Fees Charged by the Central Bank of Iraq (Revised) · 2025-08-18
  2. The Guideline on Suspicious Transaction Indicators for Money Laundering and Terrorist Financing via Electronic Payment Services 2020 · 2020-05-11
  3. Regulatory Bylaw No. 17 (Custodian) Amended for 2025 · 2026-04-26
  4. Requirements for Licensing Foreign Brokerage Firms to Trade on the Iraq Stock Exchange via the Tabadul Platform · 2026-02-01
  5. Regulatory Bylaw No. 35 of 2025 for Financial Brokerage Companies Seeking Licensing from the Iraqi Capital Markets Authority for Trading in Foreign Securities and Commodities Markets · 2025-09-09
  6. Regulatory By-law No. (35) of 2025 for Financial Intermediation Companies Seeking License from the Securities Commission to Trade in Foreign Securities and Commodities Markets · 2025-09-09
  7. Interim Securities Markets Law No. 74 · 2022-06-20
  8. Interim Law on Securities Markets No. 74 of 2004 · 2020-08-27
  9. Regulatory Bylaw No. 7: Opening Branches for Financial Brokerage Companies · 2023-02-14
  10. Instructions and Regulations for Opening Branches of Financial Intermediation Companies · 2022-05-24
  11. Iraqi Securities and Exchange Commission Regulatory Bylaw No. 17 (2022) on Safekeeping · 2023-02-14
  12. Requirements for Licensing Foreign Brokerage Firms to Trade on the Iraq Stock Exchange via the Tabadul Platform · 2025-10-30
  13. Regulation No. 22 of 2023 for Opening Branches of the Iraq Stock Exchange · 2023-12-13
  14. Iraq Securities Commission Board Decision on Listing Shares of Ashtar Gateway for Systems and Electronic Payment Services · 2024-07-22

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This guide is compiled automatically from 14 primary-source documents published by Iraq's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.