Iraq Tightens Screws on Anti-Money Laundering as Banks Upgrade Compliance

Strengthening Financial System Against Illicit Activities

In a bid to bolster its financial system against illicit activities, the Republic of Iraq has stepped up regulations on anti-money laundering and terrorist financing. The country is now in line with international standards set by bodies such as the Financial Action Task Force (FATF).

New Regulations for Commercial Banks

Commercial banks operating in Iraq are now required to adhere to strict guidelines aimed at preventing money laundering practices. According to sources close to the Central Bank of Iraq (CBIQ), these regulations require banks to conduct thorough client screening and monitoring procedures to prevent doing business with entities engaged in illicit activities.

Key Requirements for Commercial Banks:

• Conduct thorough client screening and monitoring procedures
• Incorporate due diligence measures for individuals controlling corporate clients
• Undergo annual training on Anti-Money Laundering/Know Your Client (AML/KYC) regulations

Importance of AML Compliance in Iraq’s Banking Sector

The CBIQ has implemented a Financial Crime Regulations framework that mirrors international standards. This move is crucial as Iraq continues to rebuild its economy, attracting foreign investment and promoting economic growth.

Benefits of Enhanced AML Regulations:

• Aligning with global best practices
• Protecting the financial system from illicit activities
• Attracting foreign investment and promoting economic growth

With these enhanced regulations in place, Iraq is poised to take another step towards strengthening its anti-money laundering regime.