Financial Crime World

IRAQ: Financial Institution Compliance Certifications Crucial for Anti-Money Laundering and Counter-Terrorism Financing Efforts

Background

As part of its efforts to combat money laundering and terrorist financing, Iraq has enacted a range of anti-money laundering (AML) and counter-terrorism financing (CTF) legislation and regulations. The country’s financial institutions and non-financial businesses are required to comply with these measures to prevent, detect, and punish money laundering and terrorist funding.

Key Requirements of Iraq’s AML Regulations

  • Customer Due Diligence: Financial institutions and non-financial businesses must conduct customer due diligence when establishing a business connection or completing a transaction worth more than five million Iraqi dinars.
  • Know Your Customer (KYC) Rules: Covered entities must verify the identification of non-account holders who conduct transactions worth at least 10 million Iraqi dinars. Beneficial owners must be recognized when creating an account and transacting more than this amount.
  • Suspicious Transaction Reporting: Entities subject to the AMLA are required to notify suspicious transactions to Iraq’s financial intelligence unit (FIU) and wait for instruction before proceeding with the transaction.
  • Record-Keeping: Financial institutions and non-financial businesses must preserve accurate and full records of their transactions and client interactions. These documents must be preserved for at least five years.

Compliance Requirements

  • Internal Controls and Policies: To achieve compliance with AML rules, financial institutions and non-financial businesses must adopt internal controls and policies, including policies and processes for identifying, reporting, and managing money laundering and terrorism financing threats.
  • Compliance Program: Financial institutions and non-financial businesses must have a compliance program to ensure they are complying with the AML/CFT requirements.

Consequences of Non-Compliance

Failure to comply may result in hefty penalties; therefore, compliance must be taken seriously. It is essential for financial institutions and non-financial businesses to stay up-to-date with the latest regulations and requirements to avoid any potential risks.

Solutions for Compliance

With Sanction Scanner solutions, financial institutions and enterprises can ensure that their firm is in compliance with Iraq’s anti-money laundering legislation. By using our services, you can:

  • Streamline Your Compliance Process: Our solutions provide a comprehensive framework for managing AML/CFT regulations, making it easier to stay compliant.
  • Reduce Risk: Sanction Scanner’s solutions help you identify and mitigate potential risks associated with money laundering and terrorist financing.
  • Ensure Accuracy: Our solutions ensure that your compliance program is accurate and up-to-date, reducing the risk of errors or omissions.

Conclusion

In conclusion, Iraq’s anti-money laundering and counter-terrorism financing efforts are crucial for preventing and detecting illegal activities. Financial institutions and non-financial businesses must comply with the AML/CFT regulations to avoid any potential risks. With Sanction Scanner solutions, you can ensure that your firm is in compliance with Iraq’s anti-money laundering legislation and reduce the risk of financial penalties.