Iraq Takes Steps to Enhance Financial Transparency and Compliance
Strengthening Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Regime
Baghdad, [Date] - The Central Bank of Iraq has taken significant steps to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime as part of its efforts to improve financial transparency and compliance with international standards.
Progress in Implementing AML/CFT Measures
According to a report by the Financial Action Task Force (FATF), Iraq has made progress in implementing AML/CFT measures, including:
- Issuance of new laws and regulations
- Establishment of an AML/CFT council
- Improved risk assessment and national risk assessment processes
- Enhanced international cooperation with other countries
Supervision and Regulation of Financial Institutions
The Central Bank of Iraq has also taken steps to enhance its supervision and regulation of financial institutions, including:
- Implementation of Basel II and III recommendations
- IFRS auditing standards
- AAOIFI recommendations
- Launching a credit register system and developing its coverage to include all financial institutions and billing agencies
International Cooperation and Correspondent Banking Relationships
The Central Bank of Iraq has signed memoranda of understanding with international organizations such as the United Nations Office on Drugs and Crime (UNODC) and the International Monetary Fund (IMF), to enhance cooperation in the area of AML/CFT.
Iraq is also working to expand its corresponding relations with international financial institutions, which will help to increase inward and outward remittances, Letters of Credit (LCs) and trade imports, as well as counter guarantees.
Strategic Projects for Improving the Banking Sector
The Central Bank of Iraq has launched a number of strategic projects aimed at improving the banking sector, including:
- Development of corporate governance
- Electronic payments
- Credit bureau systems
- Improvement of international rating by recognized agencies such as Fitch, Moody’s, S&P, and CI
Economic Outlook
According to the report, Iraq’s economy is rated B- with a stable outlook from international agencies. The country has a promising opportunity to increase its mutual banking relations and develop its banks’ assets by more than $100 billion.
Key Points
- Iraq has made progress in implementing AML/CFT measures
- The Central Bank of Iraq has established an AML/CFT council and improved its risk assessment and national risk assessment processes
- The country has also improved its international cooperation with other countries
- The Central Bank of Iraq has implemented Basel II and III recommendations, IFRS auditing standards, and AAOIFI recommendations
- The bank has launched a credit register system and developed its coverage to include all financial institutions and billing agencies
- Iraq is working to expand its corresponding relations with international financial institutions to support its trade balance
- The country has a promising opportunity to increase its mutual banking relations and develop its banks’ assets by more than $100 billion
Photo Caption:
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The Central Bank of Iraq is committed to improving financial transparency and compliance with international standards.