Financial Crime World

Iraqi Parliament Passes Historic Anti-Money Laundering and Terrorism Financing Law

A Major Step Forward in Combating Financial Crimes

Baghdad, Iraq - The Iraqi parliament has passed a landmark law aimed at preventing money laundering and terrorism financing, marking a significant move to combat financial crimes. The law comes into effect immediately and requires all financial institutions operating in Iraq to implement strict anti-money laundering and combating the financing of terrorism (AML/CFT) measures.

Key Provisions

  • Mandates that all banks, insurance companies, and other financial institutions in Iraq establish a comprehensive AML/CFT framework, including effective policies, procedures, and controls to prevent the use of their services for money laundering and terrorist financing purposes.
  • Requires financial institutions to conduct regular risk assessments, maintain accurate records, and report suspicious transactions to the relevant authorities.
  • Prohibits financial institutions from dealing with shell banks or correspondent financial institutions that facilitate illegal activities.

Terrorist Funds Freezing Committee

  • Establishes a Terrorist Funds Freezing Committee responsible for freezing the assets of individuals and entities designated by the United Nations Sanctions Committee as terrorists.
  • The committee will be composed of representatives from various government ministries and agencies, including the Central Bank of Iraq, the Ministry of Finance, and the Ministry of Interior.

International Cooperation

  • Emphasizes the importance of international cooperation in combating financial crimes.
  • Requires financial institutions operating in Iraq to comply with the AML/CFT standards set by international organizations, such as the Financial Action Task Force (FATF).

Implementation and Enforcement

  • The Iraqi government has committed to establishing a special administrative department within each financial institution to oversee the implementation of the law’s provisions.
  • Provides for the establishment of a specialized court to handle cases related to money laundering and terrorist financing.

Reaction from Experts

  • Experts have welcomed the passage of the law, citing its potential to significantly reduce the threat posed by money laundering and terrorism financing in Iraq.
  • “This law is a major step forward in our efforts to combat financial crimes,” said Dr. Ali al-Hassani, an economist at Baghdad University. “It will help us to prevent the misuse of our financial system and protect the integrity of our economy.”

Next Steps

  • The Iraqi government has announced plans to establish a training program for financial institutions’ employees to ensure they are equipped with the necessary skills to implement the law’s provisions effectively.
  • The government has also pledged to provide support to financial institutions in implementing the new regulations.

In conclusion, the passage of this historic law marks a significant milestone in Iraq’s efforts to combat money laundering and terrorism financing. Its implementation is expected to have far-reaching consequences for the country’s financial sector and economy as a whole.