Iraq’s central bank has instructed banks and financial institutions to classify social-media influencers and online celebrities as high-risk clients in a move to clamp down on the growing sector.

The decision aims to protect the financial system from abuse rather than impose restrictions on legitimate activities, the CBI said in a press release seen by IntelliNews, released on November 26.

Alaa Al-Fahid, a member of the central bank’s media team, said “the directive was issued after authorities observed growing financial activity involving influencers that lacked proper documentation or economic justification.”

“This category has come to represent new risks and threats to the financial sector, especially in money-laundering, terrorist financing, illicit financial activity, fraudulent contracts and unjustified transfers,” he added local Shafaq reported later.

He explained that the decision is not intended as a crackdown on content creators: “These instructions are not a restriction, but a safeguard to protect the national economy, strengthen confidence in the banking sector, and prevent attempts to exploit one of Iraq’s most sensitive sectors.”

The circular, distributed across the banking system, requires financial institutions to apply enhanced due diligence to transactions linked to influencers and to report suspicious financial behaviour. The directive also warns against conducting large transfers or issuing facilities without verifying the source and legitimacy of funds.

Iraq is not the first country to raise concerns about influencers’ financial activities. In recent years, the UAE has tightened oversight of influencer earnings and introduced mandatory licensing following cases of undisclosed paid promotions and suspicious financial flows. 

The EU has also warned that influencers are increasingly being used as fronts for unregistered companies and crypto-related scams, prompting stricter anti-money-laundering checks. Meanwhile, Turkey and Egypt have implemented rules requiring influencers to declare their income sources amid growing concerns over tax evasion and informal cross-border payments.

Financial-crime experts say influencers, many of whom earn through advertising, digital content and cross-border payments, can unintentionally be used as conduits for illicit transfers if not monitored by regulated financial institutions.

Iraq’s central bank says the shift reflects a need to adapt AML guidelines to changing economic behaviour. The directive comes at a time when the banking sector is undergoing reforms to comply with international standards and to limit the risks associated with cash-based transactions and informal money-transfer networks.

Banks have been instructed to update their risk-assessment frameworks immediately and to treat influencer accounts with the same level of scrutiny applied to politically exposed persons (PEPs) or other high-risk categories.