Iraq’s Banking Sector Tackles Financial Crime Amidst Ongoing Regulatory Reforms

The Commercial Bank of Iraq (PSC), one of the country’s leading lenders, has strengthened its anti-money laundering and terrorist financing regulations to curb financial crime.

Background

The Republic of Iraq has criminalized money laundering and terrorist financing, with the supporting Financial Crime Regulations implemented by the Central Bank of Iraq (CBIQ) based on the Iraqi Law against money laundering and terrorist financing, as well as the principles of the Financial Action Task Force (FATF). CBIQ also adopts regulations from international entities such as Wolfsburg’s Standards, Egmont Group, United Nations Global Programme Against Money Laundering, and other relevant organizations.

Measures to Prevent Financial Crime

To prevent doing business with entities engaged in money laundering practices or illegal activity, CBIQ maintains:

• Client Screening: thorough screening of clients and incorporated entities
• Monitoring: ongoing monitoring of client relationships and transactions
• Due Diligence Procedures: conducting due diligence on clients and related parties
• Employee Awareness: educating officers and staff on policies, procedures, and processes to ensure adherence

Annual Training for Staff

In a further effort to ensure compliance, CBIQ requires all relevant staff dealing with clients or responsible for handling client relationships to undergo annual training on:

• Anti-Money Laundering (AML) Regulations: understanding the regulations and procedures
• Know Your Client (KYC) Regulations: verifying client identities and conducting due diligence

This move is seen as a significant step in enhancing the bank’s ability to detect and prevent financial crime.

Conclusion

As Iraq continues to implement regulatory reforms aimed at strengthening its banking sector, CBIQ’s efforts to combat financial crime will play a crucial role in maintaining the integrity of the country’s financial system.