Iraq Takes Steps to Combat Money Laundering Worldwide

Iraq’s efforts to combat money laundering have been stepped up by its Central Bank and Anti-Money Laundering Reporting Office. The two institutions are cracking down on financial institutions and individuals who violate anti-money laundering laws, imposing strict penalties for violators.

Anti-Money Laundering Laws in Iraq

According to the Money Laundering Law of 2004, anyone managing or trying to manage financial transactions with the intention of using them for illegal activities is subject to legal accountability. The law also holds accountable those responsible for transferring or sending cash and financial means knowing that it will be used to support or finance illegal activities.

Central Bank’s Role

The Central Bank has the right to conduct audits of financial institutions to monitor suspicious financial activity and prevent money laundering. Financial institutions found to have violated anti-money laundering laws face punitive measures, including fines and imprisonment.

• Violators can be ordered to cease their activities
• Assessed a monetary penalty
• Both
• The Central Bank may also publish the results of any enforcement action, including the names of individuals involved

Money Laundering Reporting Office

The Money Laundering Reporting Office was established in accordance with Article 12 of the Law and is responsible for:

• Collecting, processing, analyzing, and disseminating financial transactions subject to financial control and reporting
• Cooperating with international organizations to prevent money laundering and terrorist financing

International Cooperation

Iraq’s Central Bank and Anti-Money Laundering Reporting Office have the authority to request foreign authorities for information and documents required for their duties. They may also share non-public information with foreign authorities for the purpose of preventing money laundering or the commission of crime, including but not limited to terrorist financing.

Reporting Requirements

According to Article 21 of the Law, individuals are required to report the transportation of currency or other monetary instruments greater than 15 million Iraqi dinars from one place to another. The law also requires reporting of specific information when transferring money outside Iraq.

Goals and Objectives

The efforts by Iraq’s Central Bank and Anti-Money Laundering Reporting Office are aimed at mitigating the phenomenon of money laundering and ensuring greater transparency in transactions, a significant concern for governmental agencies and international bodies worldwide.