Financial Crime World

Combating Money Laundering and Terrorism Financing in Iraq

Iraq has taken significant steps to combat money laundering and terrorism financing by implementing a range of anti-money laundering (AML) and counter-terrorism financing (CTF) measures. In this article, we will explore the country’s efforts to detect, prevent, and punish such activities.

The Anti-Money Laundering and Countering Terrorist Financing Law

The foundation of Iraq’s AML efforts is the Anti-Money Laundering and Countering Terrorist Financing Law No. 39 of 2015. This law requires financial institutions and designated non-financial businesses and professions (DNFBPs) to implement various measures, including:

  • Customer Due Diligence: Financial institutions must conduct thorough customer due diligence, including know your customer (KYC) rules.
  • Suspicious Transaction Reporting: Entities subject to the law must notify the Financial Intelligence Unit (FIU) of any suspicious transactions and wait for instruction before proceeding with the transaction.
  • Record-Keeping: Financial institutions and DNFBPs must preserve accurate and full records of their transactions and client interactions.
  • Internal Controls: Entities are required to establish internal controls and policies to prevent money laundering and terrorist financing.
  • Training: Personnel must undergo AML training.

Key Requirements for Financial Institutions and DNFBPs

Financial institutions and DNFBPs subject to the law must:

  • Notify the FIU of any suspicious transactions
  • Preserve accurate and full records of transactions and client interactions
  • Conduct AML training for personnel
  • Implement customer due diligence, KYC rules, and internal controls

The Role of the Office of Combating Money Laundering and Terrorism Financing

The Office of Combating Money Laundering and Terrorism Financing, established within the Central Bank of Iraq, plays a crucial role in overseeing the implementation of AML regulations.

Advanced Detection Tools for Compliance

Sanction Scanner solutions can help financial institutions and enterprises ensure compliance with Iraq’s anti-money laundering legislation by providing advanced detection tools to identify suspicious transactions and flag potential money laundering activities. With Sanction Scanner, organizations can stay ahead of the curve and prevent money laundering and terrorist financing.

By implementing these measures, Iraq is taking a proactive approach to combating money laundering and terrorism financing, demonstrating its commitment to transparency, accountability, and financial stability.