IRAQ REMOVED FROM EU MONEY LAUNDERING RISK LIST AFTER SIX YEARS

The European Union has officially removed Iraq from its list of countries considered high-risk for money laundering, a move that is expected to boost financial cooperation and investment between the two entities.

Background

In July 2016, the EU listed Iraq among countries with strategic deficiencies in anti-money laundering (AML) and combating the financing of terrorism (CFT). However, Iraq has been steadily improving its AML/CFT regime, leading to its removal from the list.

EU Ambassador’s Statement

EU Ambassador to Iraq Ville Varjola hailed the development as “good news” that will pave the way for deepening financial ties and investment. However, he failed to provide any specific reasons for the change.

Prime Minister’s Response

Prime Minister Mustafa al-Kadhimi welcomed the decision, attributing it to Iraq’s effective diplomatic efforts and vowing to continue working towards serving national interests and achieving a deserving status.

The Removal Process

The EU’s decision is in line with that of other major economies and intergovernmental watchdogs. The Financial Action Task Force (FATF), a global anti-money laundering watchdog, removed Iraq from its “grey list” in June 2018 after the country made significant progress in improving its AML/CFT regime.

Comparison with Other Lists

Iraq joins 17 other countries on the EU’s high-risk register, including Afghanistan, The Bahamas, Syria, and Yemen. Eleven countries feature on both the EU and FATF lists, including Cambodia, Jamaica, Myanmar, and Panama. Meanwhile, the US State Department compiles a list of major money laundering jurisdictions, which includes 80 countries, including the US itself but not Iraq.

UK’s Position

The UK has also maintained its own list of high-risk countries for money laundering, removing Iraq from it in March last year.

Impact

The development is expected to have a positive impact on Iraq’s financial sector and its relations with international partners. It is hoped that this move will boost financial cooperation and investment between Iraq and the EU, ultimately contributing to the country’s economic growth and stability.

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