Financial Crime World

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Iraq Sees Significant Progress in Combating Financial Fraud with UNDP Support

Basra, Iraq - The Iraqi government has made significant strides in detecting and combating financial fraud and corruption with the support of the United Nations Development Programme (UNDP).

Capacity-Building Workshops on Forensic Auditing

A series of targeted capacity-building workshops on forensic auditing, conducted from March 2023 to February 2024, have equipped auditors, lawyers, and IT experts from federal boards and commissions with the skills needed to recognize, investigate, and prevent financial fraud. The eight workshops, held in Baghdad, Erbil, Sulaymaniyah, and Basra, trained over 200 participants on:

  • Recognizing patterns of potential financial irregularities or fraud
  • Preparing comprehensive forensic audit reports
  • Practicing preventive auditing
  • Strengthening internal control frameworks to mitigate fraud risk

Collaborative Environment and Practical Approach

The workshops fostered a collaborative environment where professionals from various government agencies shared best practices and experiences, building a culture of shared understanding and joint problem-solving. Participants praised the training, citing its practical approach and exchange of professional ideas with colleagues from other government agencies.

Forensic Auditing: A Critical Tool in Combating Financial Crimes

Forensic auditing is a critical tool in combating financial crimes, and the training provided participants with the skills to investigate these crimes effectively. The workshops also deepened their understanding of global standards in forensic accounting and auditing, enabling them to uphold their entities’ integrity.

UNDP Project: Strengthening the Rule of Law and Human Rights

The UNDP project “Strengthening the Rule of Law and Human Rights to Sustain Peace and Foster Development in Iraq” aimed to fortify the capabilities of investigative bodies in tackling complex financial crimes. The project has supported over 700 investigating judges, prosecutors, police investigators, auditors, and financial analysts since 2021.

Funding and Acknowledgments

The US Bureau of International Narcotics and Law Enforcement Affairs (INL) provided generous funding for the project. Romana Schweiger, Programme Manager of the UNDP Rule of Law/Security Sector Reform Programme, noted that the forensic auditing workshops stand out for their focus on financial analyses and how auditing can be used as a tool in fighting crimes.

Combating Financial Fraud: A Broader Goal

The Iraqi government’s efforts to combat financial fraud are part of its broader goal to build trust and confidence between legal entities, public finance institutions, security sector institutions, and communities. The UNDP Iraq programme on Rule of Law and Security Sector Reform supports the government’s efforts to ensure institutional development and capacity building for accountability and oversight.

Types of Financial Fraud in Iraq

Iraq has seen various forms of financial fraud, including:

  • Corruption: Embezzlement, bribery, and other forms of corruption have been major concerns in Iraq.
  • Fraudulent transactions: The country has witnessed numerous cases of fraudulent transactions, including money laundering and terrorist financing.
  • Cybercrime: Iraq has experienced a surge in cyberattacks and online fraud, targeting government institutions, banks, and individuals.
  • Asset misappropriation: Auditors have detected instances of asset misappropriation, such as the theft or misuse of public funds.

Conclusion

The UNDP’s forensic auditing workshops aimed to equip professionals with the skills to investigate and prevent these types of financial fraud. The training has contributed significantly to Iraq’s efforts to build a more transparent and accountable financial ecosystem.