Financial Crime World

Iraq Launches Anti-Money Laundering Policy Template to Combat Financial Crimes

A New Era in Combating Financial Crimes

The Iraqi government has taken a significant step forward in combating financial crimes and terrorism financing by launching an anti-money laundering (AML) policy template for financial institutions, non-financial businesses, professions, and designated non-financial businesses and professions (DNFBPs).

The Anti-Money Laundering and Countering Terrorist Financing Law No. 39 of 2015 serves as the foundation for AML regulations in Iraq, establishing a comprehensive framework to prevent, detect, and punish money laundering and terrorist financing.

Key Requirements Under the AML Policy Template

Customer Due Diligence

  • Financial institutions and DNFBPs must conduct thorough customer due diligence when establishing business connections or completing transactions worth more than five million Iraqi dinars (approximately $4,250).

Know Your Customer (KYC) Rules

  • Covered entities must verify the identification of non-account holders conducting transactions worth at least 10 million Iraqi dinars (roughly $8,500), and beneficial owners must be recognized when creating an account.

Suspicious Transaction Reporting

  • Entities subject to AML regulations must report suspicious transactions to Iraq’s financial intelligence unit (FIU) and freeze relevant funds until guidance is obtained. Reports must include information on transactions involving illegal activities or money laundering, terrorism financing, or evading laws.

Record-keeping

  • Financial institutions and DNFBPs must maintain accurate records of transactions and client interactions for at least five years.

Internal Controls and Policies

  • Entities must adopt internal controls and policies to identify, report, and manage money laundering and terrorism financing threats.

Training

  • Financial institutions and DNFBPs must provide AML training to personnel to ensure they are aware of the dangers of money laundering and terrorism financing.

Implementation and Compliance

The Office of Combating Money Laundering and Terrorism Financing (Money Laundering Reporting Office) plays a crucial role in implementing AML regulations, receiving reports from reporting organizations, analyzing information, and communicating with relevant authorities.

Financial institutions and DNFBPs must establish compliance programs to ensure adherence to AML requirements, which includes:

  • Information exchange
  • Participation in international organizations
  • Creating databases for national centers
  • Providing training sessions

Failure to comply may result in severe penalties.

Conclusion

The Iraqi government’s anti-money laundering policy template aims to create a robust framework to prevent financial crimes and terrorism financing, ensuring the integrity of the country’s financial system. By implementing these measures, Iraq is taking a significant step towards combating financial crimes and protecting its citizens from the dangers of money laundering and terrorism financing.