Iraq’s Financial Institutions Step Up Compliance Training Amidst Tightening Regulations
Elaf Islamic Bank has taken a proactive approach to ensure effective and dynamic compliance with regulations set by the Central Bank of Iraq, MENAFATF, and international bodies.
Revamped Compliance Department
The bank’s revamped compliance team is responsible for monitoring and assessing the efficiency of policies, procedures, processes, and systems in place to prevent non-compliance issues. The team ensures that basic banking practices such as Know Your Customer (KYC) policies are strictly followed, enabling:
- Customer due diligence
- Screening
- Monitoring
- Classifying customers based on their risk profile
Identifying and Escalating Suspicious Activities
The compliance department is also responsible for identifying and escalating suspicious activities to management and regulatory bodies. This includes incorporating changes in regulatory guidelines through regular review and updating of procedures and processes.
Employee Training
To equip employees with adequate skills to identify suspicious transactions and prevent non-compliance issues, the bank conducts:
- Regular training sessions
- Specific training on identifying suspicious transactions
Compliance Policy and Audits
Elaf Islamic Bank’s compliance policy requires all operations to be carried out at all times in conformity with the highest ethical standards, full observance of applicable laws and regulations, international best practices, and conventions collated by international bodies. To ensure compliance, the bank conducts:
- Quarterly independent audits
- Yearly independent audits
FATCA Compliance
Elaf Islamic Bank has declared its status as a “FATCA compliant” reporting financial institution under the Model 2 IGA, with a Global Intermediary Identification Number (GIIN) assigned by the Internal Revenue Service. The bank’s FATCA GIIN is L7VZ9D.99999.SL.368, reflecting its commitment to adhering to foreign account tax compliance regulations effective from July 1st, 2014.
By implementing these measures, Elaf Islamic Bank demonstrates its commitment to maintaining a strong compliance program and staying ahead of the curve in anti-money laundering, combating terrorism financing, and non-proliferation of weapons of mass destruction.