Iraq Takes Steps to Combat Financial Crime
May 2014, Baghdad
Iraq has taken significant steps to combat financial crime, including money laundering and terrorist financing. The country’s Anti-Money Laundering Law (AML Law) No. 93 of 2004 defines money laundering as “the administration of, or the attempt to administer, a financial process employing revenues from unlawful activity” and aims to prevent criminals from using the financial system to conceal their illegal activities.
Establishment of the Anti-Money Laundering Office
The Central Bank of Iraq has established an Anti-Money Laundering Office, which is responsible for receiving reports related to money laundering issues. The office collects, treats, analyzes, and publishes testimonials related to financial transactions and participates in implementing Iraqi policy to prohibit money laundering and criminal activities, including terrorism financing.
Reporting Procedures
Financial institutions are required to implement certain procedures to prevent money laundering and report suspicious transactions to the Central Bank’s Anti-Money Laundering Office. These procedures include:
- Verifying the identity of clients
- Identifying the beneficial owner of funds
- Reporting any suspicious transactions
Additionally, financial institutions must file reports with the Central Bank’s Anti-Money Laundering Office in cases where they suspect a transaction or series of transactions totaling more than 2 million Iraqi Dinars.
Record Keeping and Cooperation
Financial institutions are required to keep records of all transactions for at least five years and report any suspicious transactions to the judicial prosecuting authorities. The Iraq government has also established mechanisms for cooperation and information exchange with foreign authorities to combat money laundering and terrorist financing.
Guidance and Directives
The Central Bank’s Anti-Money Laundering Office provides guidance and directives to financial institutions on how to comply with AML Law requirements. Financial institutions in Iraq are required to report any suspicious transactions or activities to the office, which is responsible for investigating these reports and taking appropriate action.
Conclusion
Iraq has made significant progress in combating financial crime and implementing anti-money laundering measures. The country’s efforts are aimed at preventing criminals from using the financial system to conceal their illegal activities and protecting the national economy from the threats posed by money laundering and terrorist financing.