Financial Crime World

Iraq Embraces Risk-Based Approach to Combat Financial Crime

Strengthening Defenses Against Sophisticated Financial Threats

In a bid to combat financial crime, Iraq has begun embracing a risk-based approach to anti-money laundering (AML) and combating the financing of terrorism (CFT). This move aims to strengthen the country’s defenses against sophisticated financial threats and enhance its global reputation.

A Comprehensive Framework for AML/CFT

As part of this initiative, Iraqi regulators have been working with international experts to develop a comprehensive AML/CFT framework. This framework will focus on identifying high-risk areas and implementing targeted measures to mitigate associated risks.

Key Features of the Framework:

  • Identifying high-risk areas
  • Implementing targeted measures to mitigate associated risks
  • Analyzing internal processes and controls
  • Assessing the effectiveness of existing anti-financial crime measures

International Expertise Supports Efforts

To support this effort, a team of international experts has been engaged to provide technical assistance and guidance on AML/CFT best practices. These experts will work closely with Iraqi regulators and financial institutions to develop and implement effective risk management strategies.

Benefits of the Risk-Based Approach:

  • Enhanced ability to detect and prevent money laundering and terrorist financing activities
  • Promotion of a culture of compliance within the country’s financial sector
  • Greater transparency and accountability within the country’s financial sector
  • Enhanced investor confidence

Strengthening Cooperation and Information Sharing

In addition to this initiative, Iraqi regulators have been working with international partners to strengthen cooperation and information sharing in AML/CFT efforts. This includes the development of a national AML/CFT strategy and the establishment of a dedicated unit to oversee AML/CFT efforts.

The Future of Iraq’s Financial Sector:

  • Greater stability, security, and confidence within the system
  • Enhanced ability to combat financial crime and promote a more stable and secure financial system

By embracing this risk-based approach, Iraq is taking a significant step towards strengthening its defenses against sophisticated financial threats and enhancing its global reputation.