Citigroup Inc. (C) got Iraqi approval to open an office in Baghdad, as it seeks to become the first U.S. bank to enter a country where fewer than one in five people have an account.

Iraq’s central bank gave preliminary consent to set up the representative office, Citigroup, the third-largest U.S. lender, said in an e-mailed statement today. Former diplomat Dennis Flannery, who has run the bank’s Iraqi desk from Amman, Jordan, for two years, will manage the operation. Branches are also planned for Erbil and Basra, it said.

“Iraq is an important market, with an economy that has substantial potential over time,” said Jame Cowles, chief executive officer for Europe, the Middle East and Africa.

http://www.bloomberg.com/news/2013-06-24/citigroup-venturing-into-iraq-gets-approval-for-baghdad-office.html