Iraqi banking experts said last week that the bank was still allowed to participate in the Iraq Central Bank’s daily auction at which commercial banks can sell Iraqi dinars and buy United States dollars. These auctions are a crucial pathway for Iranian access to the international financial system. Western officials say that Iran seeks to bolster its reserves of dollars to stabilize its exchange rates and pay for imports.

Iraqi and American officials with knowledge of Iraqi banking practices say Iranian customers are able to move large amounts of cash through the auction, and from there into banks in regional financial centers like Dubai, United Arab Emirates, or Amman, Jordan, and then into the international banking system.

Mudher Salih, the central bank governor, said in an interview that Elaf Islamic Bank was being allowed back into the auction because Elaf officials had denied any wrongdoing. “Elaf Bank is attending the auctions, and they are telling us that they didn’t violate the law, and saying that they didn’t deal with any Iranian institutes,” Mr. Salih said.

While Iraq has tried to impose more stringent reporting requirements that might pick up illegal transfers, officials with knowledge of the Iraqi banking industry say that banks, hawala houses, an unofficial global network of money-traders, and their Iranian customers are finding ways around them, often by forging documents that make it look as if the money transfers are to finance legitimate trade between Iraq and other countries.

Thanks to Iraq’s growing oil revenue, the Iraqi central bank has about $60 billion in foreign exchange reserves, held in accounts at the Federal Reserve Bank of New York, with which to meet the insatiable demand for dollars. But the new flight of dollars out of Iraq is prompting criticism of the central bank and of the Iraqi government.

The accusations of high-level Iraqi government involvement in sanctions-busting have roiled Iraqi politics and invariably reflect on Mr. Maliki, since many Iraqi officials now say that he has taken effective control of the Iraqi central bank, which is nominally independent.

“We want to question the central bank and the banks that are involved,” Ali al-Sachri, a member of Parliament, said in an interview. Mr. Salih acknowledged the huge dollar transfers and said that they threatened the economic stability of Iraq by depleting the country’s foreign reserves. He said that “in order to prevent the economy from collapsing, we should put an end to this illegal flow of dollars outside Iraq.”