Financial Crime World

Iraq Enacts Tough Measures to Combat Money Laundering and Terrorism Financing

Strengthening Efforts Against Illicit Activities

Baghdad, Iraq - In a bid to reinforce its efforts against money laundering and terrorism financing, the Iraqi government has introduced a new law requiring financial institutions and designated non-financial businesses and professions (DNFBPs) to implement robust anti-money laundering (AML) and counter-terrorism financing (CFT) measures.

Key Provisions of the Law

  • Customer Due Diligence: Financial institutions and DNFBPs must conduct customer due diligence on a risk-based approach, including identifying and verifying the identity of customers and beneficial owners.
  • Transaction Record-Keeping: Financial institutions and DNFBPs must maintain records of all transactions for at least five years after the business relationship with the customer has ended or the transaction was carried out, whichever is longer.
  • AML/CFT Programs: Financial institutions and DNFBPs must establish AML/CFT programs, including assessing money laundering and terrorism financing risks related to their business, implementing policies and procedures for mitigating those risks, and providing training to officers and employees on the detection of suspicious transactions.
  • Anonymous Accounts Prohibition: Financial institutions and DNFBPs are prohibited from opening or maintaining anonymous accounts or accounts under fictitious names.
  • Suspicious Transaction Reporting: Financial institutions and DNFBPs must report any suspected money laundering or terrorism financing transactions to the authorities immediately.

Impact

The new law is expected to have a significant impact on the fight against money laundering and terrorism financing in Iraq. By requiring financial institutions and DNFBPs to implement robust AML/CFT measures, the government hopes to prevent the misuse of the financial system for illegal activities and protect the integrity of the Iraqi economy.

Conclusion

The Iraqi government’s new law is a significant step forward in its efforts to combat money laundering and terrorism financing. By implementing these measures, financial institutions and DNFBPs will be better equipped to detect and prevent suspicious transactions, and support the fight against illegal activities. The law is expected to have far-reaching consequences for the country’s financial sector and its ability to combat these serious threats.

Additional Measure

The government has also established a Terrorist Funds Freezing Committee to freeze the funds of terrorists and other assets of individuals designated by the UN Sanctions Committee.