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IRAQI BANKS URGED TO REPORT SUSPICIOUS TRANSACTIONS TO FIGHT MONEY LAUNDERING AND TERRORISM FINANCING

In a bid to curb money laundering and terrorism financing activities, Iraq’s Central Bank has emphasized the importance of reporting suspicious transactions by financial institutions. The move is aimed at safeguarding the country’s economy from organized crime and its devastating effects.

What is Money Laundering?

According to the Iraqi Anti-Money Laundering Law (AML Law) No. 93 of 2004, money laundering is defined as the administration or attempt to administer a financial process employing revenues from unlawful activity. The law also criminalizes terrorism financing, which involves offering or requesting someone else to offer money, support, or other related services to carry out activities that benefit terrorist groups.

Combating Money Laundering and Terrorism Financing

To combat these threats, the Central Bank has established an Anti-Money Laundering Office, which is responsible for collecting, treating, analyzing, and publishing testimonials related to financial transactions. The office also participates in implementing Iraq’s policy against money laundering and terrorism financing by exchanging information with relevant authorities and international organizations.

Requirements for Financial Institutions

Financial institutions have been urged to verify the identity of their customers and report any suspicious transactions to the Central Bank’s Money Laundering Reporting Office. This includes:

  • Identifying the beneficial owner of funds
  • Verifying the purpose and nature of transactions
  • Reporting any transactions exceeding 2 million Iraqi Dinars or 15 million Dinars

Record-Keeping Requirements

Financial institutions are required to maintain records of their transactions for a minimum period of five years and provide these records to the Central Bank, Money Laundering Reporting Office, and judicial authorities upon request.

Regulations and Guidelines

The Central Bank has also issued regulations and guidelines to help financial institutions comply with AML Law requirements. These guidelines emphasize the importance of:

  • Training staff on anti-money laundering procedures
  • Implementing internal controls to prevent suspicious transactions

Conclusion

Financial institutions in Iraq have a critical role to play in fighting money laundering and terrorism financing activities. By reporting suspicious transactions and complying with AML Law requirements, they can help safeguard the country’s economy and contribute to a more stable and secure environment for all citizens.

The Iraqi government’s efforts to combat money laundering and terrorism financing are aimed at protecting the country’s economy from organized crime and its devastating effects. The move is also expected to enhance Iraq’s global reputation and promote economic stability in the region.