Banking Compliance Regulations in Iraq: Elaf Islamic Bank Leads the Way

Strengthening Anti-Money Laundering and Combating Terrorism Financing Efforts

In a move to ensure strict adherence to anti-money laundering, combating terrorism financing, and non-proliferation of weapons of mass destruction regulations, Elaf Islamic Bank has revamped its compliance department to effectively monitor and assess its policies, procedures, processes, and systems.

Compliance Team Responsibilities

The bank’s compliance team is responsible for:

• Ensuring strict adherence to basic banking practices such as Know Your Customer (KYC) policies
• Screening and monitoring customers based on their risk profile
• Identifying and escalating suspicious activities to management and regulatory bodies
• Incorporating changes in regulatory guidelines through regular review and updates of procedures and processes
• Conducting regular training sessions for employees to equip them with the necessary skills to identify suspicious transactions and prevent non-compliance issues

Audits and Compliance Monitoring

Elaf Islamic Bank conducts both internal and external independent audits on a quarterly and yearly basis, respectively, to ensure compliance with:

• Central Bank of Iraq rules
• International regulatory bodies’ rules on anti-money laundering, combating financial terrorism, and non-proliferation of weapons of mass destruction

FATCA Compliance

The bank has declared itself “FATCA compliant” under the Model 2 IGA, having been assigned a Global Intermediary Identification Number (GIIN) by the Internal Revenue Service (IRS). The GIIN, L7VZ9D.99999.SL.368, confirms Elaf Islamic Bank’s status as a reporting Financial Institution Single Status.

Recognition and Commitment to Integrity

Elaf Islamic Bank’s compliance efforts have been recognized by international bodies, including MENAFATF and the Central Bank of Iraq, demonstrating its commitment to upholding the highest standards of integrity and transparency in its operations.