Financial Crime World

Sustainable Finance Roadmap for the Central Bank of Iraq

Introduction

The Central Bank of Iraq has developed a comprehensive roadmap for sustainable finance development in the country. This document outlines four pillars: Digital Financial Inclusion, Improving Access to Finance, Improving Digital Inclusion, and Transparency and Market Discipline.

PILLAR I: Digital Financial Inclusion

  • Target Development: Develop targets for digital financial inclusion (e.g., increasing online or mobile bank accounts)
    • Responsible entity: Central Bank
    • Timeline: 2026-2027 (High priority, Ongoing)
  • Key Goals:
    • Increase access to digital financial services for underserved populations
    • Enhance financial inclusion through technology

PILLAR II: Improving Access to Finance

  • Enhancing Financial Inclusion: Enhance the financial inclusion of Iraqi citizens and businesses through technology
    • Responsible entity: Central Bank
    • Timeline: 2024-2025 (Medium priority)
  • Digital Payment System: Develop a digital payment system for low-income households
    • Responsible entity: Ministry of Labor and Social Affairs
    • Timeline: 2026-2027 (High priority, Ongoing)

PILLAR III: Improving Digital Inclusion

  • Access to Financial Services: Increase access to financial services for underserved populations (e.g., women, youth)
    • Responsible entity: Central Bank
    • Timeline: 2024-2025 (Medium priority)
  • Key Goals:
    • Enhance financial inclusion through technology
    • Improve access to digital financial services

PILLAR IV: Transparency and Market Discipline

  • ESG Disclosure Requirements: Enhance mandatory ESG disclosure requirements in ESG codes for banks
    • Responsible entity: Central Bank/IFC
    • Timeline: 2024-2025 (High priority, Not yet started)
  • Guidance on Sustainability Reporting: Develop guidance on sustainability ESG reporting and disclosure
    • Responsible entity: Central Bank/IFC
    • Timeline: 2024-2025 (High priority, Not yet started)

Next Steps

  • Launch of Sustainable Finance Roadmap: Launch of Sustainable Finance Roadmap of the Central Bank of Iraq (14th of Dec 2023)
  • Website Creation: Creation of a website with sustainable finance information and capacity-building materials for banks and other regulated entities
    • Responsible entity: Central Bank
    • Timeline: 2023-2029 (High priority, Ongoing)

Annex A: Journey of Sustainable Finance Development in Iraq

The annex provides a brief overview of the milestones achieved in sustainable finance development in Iraq since 2018, including:

  • Corporate Governance Guide: Enactment of Corporate Governance Guide for Banks
  • Iraqi Sustainability Principles: Issuance of Iraqi Sustainability Principles as part of the Corporate Governance Guide
  • Iraq Vision 2030: Launch of Iraq Vision 2030
  • National Committee for Sustainable Development: Formation of National Committee for Sustainable Development
  • ESG Scorecard: Enactment of ESG Scorecard for Iraqi banking sector