Iraq's Central Bank lifts audit requirement for Kurdistan Region firms: reports can now be filed in Erbil

Rastinews — Under a decision issued by Iraq's Central Bank on September 16, the bank has revoked a regulation it adopted on November 8, 2024, which had required financial audit reports for companies in the Kurdistan Region to be prepared by the Association of Accountants and Auditors in Baghdad.

Under the new decision, audit reports for companies in the region will be accepted by the Central Bank as long as they are prepared by the Association of Accountants and Auditors in the Kurdistan Region.

Erbil Chamber of Commerce and Industry President Dara Jalil Hajji Said said banks began applying the decision from Sunday, September 20.

Easier access to dollars at the official rate

The audit in question is part of the Central Bank's procedures governing companies' ability to purchase dollars at the official exchange rate for import transactions.

Said noted that Kurdistan Region companies had until now been required to carry out their audit procedures in Baghdad, which imposed an additional financial burden on them.

According to Said, the new arrangement allows companies to complete their audit procedures in their own region, while also making it easier for traders to access dollars at the official rate.

Erbil and Baghdad associations had reached an agreement

The Associations of Accountants and Auditors in Baghdad and Erbil reached an agreement on August 16 on auditing companies within their respective jurisdictions.

Under that agreement, each institution would audit companies in its own jurisdiction and forward the reports it prepared to Iraq's Central Bank through an official letter.

The Central Bank's November 2024 decision had tied the audit procedures of Kurdistan Region companies to Baghdad.