Financial Crime World

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Iraq Takes Major Steps to Combat Money Laundering and Terrorist Financing

Baghdad, Iraq - The Central Bank of Iraq (CBI) has made significant strides in enhancing its Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) policies and procedures, according to a recent report by the Middle East and North Africa Financial Action Task Force (MENA FATF).

Strengthened Policies and Procedures

The CBI has issued several circulars to prevent dealing with internationally sanctioned banks and institutions, including:

  • Prohibiting dealings with Iranian banks
  • Restricting US Dollar trade with Iranian banks
  • Preventing transactions with North Korean entities

Additionally, the bank has applied AML/CFT laws in the Kurdistan region of Iraq, where two new branches have been opened under administrative order #3819 in 2016.

Awareness and Training

The CBI has:

  • Raised awareness among financial institutions (FIs) about key risk indicators
  • Issued a guide for FIs on customer due diligence
  • Prepared a standard account opening form, including fields for high-risk customers such as politicians and US citizens
  • Arranged specialized training courses for FIs in all governorates of Iraq

Electronic Banking Systems and Supervisory Controls

The CBI has:

  • Directed licensed banks to acquire electronic banking systems to combat money laundering and terrorist financing
  • Prepared comprehensive supervisory controls derived from FATF recommendations

Compliance with AML/CFT Recommendations

Iraq’s level of compliance with core AML/CFT recommendations is rated “Largely Compliant” (LC), while its level of compliance with key recommendations is also rated LC. The country has made significant progress in implementing these recommendations, which has led to a reduction in the number of regular follow-ups and an upgrade to biennial updates.

Notable Achievements

According to the report, Iraq has achieved notable results, including:

  • 435 ML/CFT convictions issued in 2017
  • Funds of 370 persons and companies frozen
  • Value of frozen assets: US$ 50Mn & € 252Mn
  • 56 MLA requests for the recovery of funds
  • 132 extradition requests of convicted criminals
  • 1 bank and 31 companies whose licenses were withdrawn for breaching the AML/CFT Law

International Recognition

Iraq’s efforts to combat money laundering and terrorist financing have been recognized by international organizations, and the country is now considered a leader in this field. The CBI’s commitment to implementing AML/CFT policies and procedures has helped to improve transparency and reduce the risk of financial crimes.

For more information, please contact [insert name and email] at the Central Bank of Iraq.