Financial Crime World

Iraq Tightens Grip on Financial Crimes with Stronger AML/CTF Laws

Combating Financial Crimes with the Establishment of the Anti-Money Laundering and Terrorist Financing Office

Baghdad, Iraq - The Central Bank of Iraq has taken a significant step in combating financial crimes by establishing the Anti-Money Laundering and Terrorist Financing Office. This office was established in 2007 and reconfigured in 2015 to implement and enforce Iraq’s anti-money laundering (AML) and counter-terrorism financing (CTF) laws.

Key Responsibilities of the AML/CTF Office

  • Implement and enforce AML/CTF laws
  • Receive and analyze reports of suspected money laundering or terrorist financing activities
  • Provide additional information to the AML/CTF office upon request
  • Suspend financial transactions or activities for up to seven working days if there is a reasonable suspicion of money laundering or terrorist financing

Obligations of Reporting Entities and Designated Non-Financial Businesses and Professions

  • Receive and analyze reports of suspected money laundering or terrorist financing activities
  • Provide additional information to the AML/CTF office upon request
  • Establish a compliance program to prevent and detect AML/CTF activities, including:
    • Coordinating with government agencies and international organizations to exchange information on money laundering and terrorism funding
    • Participating in conferences and training workshops
    • Assembling and analyzing data on AML/CTF cases

National Database of Suspected AML/CTF Activities

  • The AML/CTF office will create a national database of suspected AML/CTF activities to support judicial authorities in implementing the law’s provisions.

Importance of Compliance

  • Failure to comply with the law’s requirements can result in notification to regulatory authorities or other competent bodies.

Significance of the AML/CTF Office

  • The establishment of the AML/CTF office is a significant step forward in Iraq’s efforts to combat financial crimes and protect its financial system from abuse.
  • The office will play a critical role in identifying and preventing AML/CTF activities, contributing to increased transparency and stability in the country’s financial sector.

Commitment to International Cooperation

  • The Central Bank of Iraq is committed to working with international partners and domestic stakeholders to ensure that the country’s financial system is secure and transparent.
  • The AML/CTF office will closely monitor international organizations and other countries, which have been critical of Iraq’s slow pace in implementing its AML/CTF laws.

Addressing International Concerns

  • Iraq has faced criticism from the Financial Action Task Force (FATF) for its slow pace in implementing its AML/CTF laws.
  • The country is working to address these concerns and implement its AML/CTF laws, which are seen as crucial for preventing the funding of terrorist organizations and other illicit activities.

Conclusion

The establishment of the Anti-Money Laundering and Terrorist Financing Office is an important milestone in Iraq’s efforts to combat financial crimes. The office will play a critical role in identifying and preventing AML/CTF activities, contributing to increased transparency and stability in the country’s financial sector.