Financial Crime World

Iraq Enacts Stringent Anti-Money Laundering and Countering Financing of Terrorism Regulations

Iraq has established a robust anti-money laundering (AML) and countering financing of terrorism (CFT) regulatory framework to combat money laundering and terrorism financing.

History of AML/CFT Regulation in Iraq

The Office of Combating Money Laundering and Terrorist Financing was set up in 2007 as part of the Central Bank of Iraq’s structure. However, it gained independence in 2015 after the issuance of the Anti-Money Laundering and Terrorism Financing Law No. 39.

Responsibilities of AML/CFT Office

The AML/CFT office is responsible for:

  • Receiving, acquiring, or investigating reports about operations suspected of including proceeds of original crime, money laundering, or terrorism funding.
  • Analyzing information from reporting entities.
  • Suspending financial transactions or activities for up to seven working days if there are concerns about proceeds smuggling or damage to the analysis.

Compliance Requirements

Financial institutions and designated non-financial businesses and professions in Iraq must have a compliance program that includes:

  • Customer identity verification
  • Monitoring of transactions
  • Reporting suspicious activities

The compliance program is designed to ensure that financial institutions and other regulated entities identify and report suspicious transactions related to money laundering or terrorism financing.

International Cooperation

Iraq’s AML/CFT regulations require financial institutions to:

  • Exchange information with competent authorities.
  • Participate in international organizations and conferences to combat money laundering and terrorism financing.
  • Establish a database to analyze and disseminate information about potential money laundering or terrorist financing.
  • Assist judicial authorities in enforcing the law.

Due Diligence Procedures

To ensure compliance with AML/CFT regulations, financial institutions and other regulated entities in Iraq are advised to:

  • Implement robust due diligence procedures, including:
    • Screening of customers against sanctions lists
    • Monitoring of transactions for suspicious activity
  • Maintain accurate records of all transactions and activities.
  • Provide regular reporting to the AML/CFT office.

MemberCheck’s Solutions

MemberCheck offers solutions that can help financial institutions and other regulated entities in Iraq comply with AML/CFT regulations. Our solutions provide:

  • Secure and simple scanning for politically exposed individuals
  • Checking names against sanctions lists, regulatory lists, law enforcement lists, and other official lists.
  • Sophisticated scan filters and due diligence workflow to minimize time spent sorting through false matches.
  • Scan results and reporting sections for easy access to customer details and downloading of reports for further investigation or auditing purposes.

Conclusion

Iraq’s AML/CFT regulations are designed to combat money laundering and terrorism financing by ensuring that financial institutions and other regulated entities implement robust due diligence procedures and maintain accurate records of all transactions and activities. By implementing these measures, Iraq aims to strengthen its efforts to combat money laundering and terrorism financing and protect the integrity of its financial system.