Financial Crime World

IRAQ: Central Bank Establishes Office to Combat Money Laundering and Terrorism Financing

The Central Bank of Iraq has taken a significant step towards preventing the misuse of the country’s financial system by establishing an office to combat money laundering and terrorism financing.

History of the Office

The Office of Combating Money Laundering and Terrorist Financing was set up in 2007 within the Central Bank’s structure. In 2015, the office underwent a reconfiguration to enhance its effectiveness in combating these illegal activities.

Responsibilities

To comply with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations, reporting entities in Iraq are required to perform several duties:

  • Receive and analyze reports on suspected money laundering or terrorist financing activities
  • Obtain additional information from reporting entities as needed to complete its analysis
  • Suspend financial transactions or activities if there is a reasonable suspicion of money laundering or terrorism funding

Compliance Requirements

Designated non-financial businesses and professions in Iraq, as well as financial institutions, are required to implement compliance programs to prevent the use of their services for money laundering or terrorist financing. These initiatives aim to achieve several goals:

  • Coordinate with government agencies and international organizations to combat money laundering and terrorism financing
  • Prevent the misuse of their services for illegal activities

Measures Implemented by the AML/CTF Office

To support these efforts, the AML/CTF office has implemented various measures:

  • Created a database to analyze and disseminate data on potential money laundering or terrorist funding activities
  • Provided training for concerned staff
  • Notified regulatory authorities of non-compliant financial institutions
  • Provided technical support for agreements and treaties relating to money laundering and terrorism financing

Conclusion

The establishment of the AML/CTF office in Iraq is an important step towards preventing the misuse of the country’s financial system for illegal activities and protecting its citizens from the threat of money laundering and terrorism financing.